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Posted on Jun 12, 2024

Consider the following cost curve for a firm in a competitive industry where the market price equals $90. C = 1/3q^3 + 9q + 1,250

a) What is the firm's marginal cost (MC)?

b) At what level of output does the firm maximize profits?

c) What is the firm's maximizing price? d) What is the firm's profit?

e) In the short-run, should the firm produce or shut-down? Explain.

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