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A perfectly competitive firm has the following short-run total cost function: TC = 4000 + 20Q + 0.4Q 2 i)If price is RM60 per unit,

A perfectly competitive firm has the following short-run total cost function:

TC = 4000 + 20Q + 0.4Q2

i)If price is RM60 per unit, determine its profit maximizing or loss-minimizing output for the short run.

ii) Sketch a diagram to illustrate the above situation.

iii) Discuss whether the firm should hut down or continue their production

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