Consider a perfectly competitive producer described by the following equations: TC = 3500 + 40Q + 0.2Q
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Question:
Consider a perfectly competitive producer described by the following equations:
TC = 3500 + 40Q + 0.2Q2
ATC for the firm: ATC = (3500/Q)+ 40 + 0.2Q
AVC for the firm: AVC = 40 + 0.2Q
MC for firm: MC = 40 + 0.4Q
Price = $150
If this firm produces at breakeven price, what will the quantity be?
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