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Calculate the profit-maximizing level of output for a perfectly competitive firm in each of the following circumstances: A. The firm's cost function is given by
Calculate the profit-maximizing level of output for a perfectly competitive firm in each of the following circumstances:
A. The firm's cost function is given by c(Q) = (1/4)Q2 and the price = $10 with probability 1/2, and equals $30 otherwise.
B. The firm's cost function is given by c(Q) = (1/2)Q2 and the price equals $6, $9, or $15, each with equal probability.
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