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Consider the following data for quantity (Q), price (P), average fixed cost (AFC), and variable cost (VC) for a firm. Q P TR AFC VC
Consider the following data for quantity (Q), price (P), average fixed cost (AFC), and variable cost (VC) for a firm. Q P TR AFC VC TC Profit 0 $35 0 1 $35 $40.00 $28 2 $35 $20.00 $48 3 $35 $13.33 $64 4 $35 $10.00 $78 5 $35 $8.00 $90 6 $35 $6.67 $107 7 $35 $5.71 $129 8 $35 $5.00 $159 9 $35 $4.44 $199 10 $35 $4.00 $253 (a) What is the cost of producing zero units? (b) Calculate the missing information for total revenue (TR), total cost (TC), and profit. (c) What is the equilibrium price and quantity? (d) What is the economic profit for this firm? (e) Does the profit-maximizing condition hold at the equilibrium? If not, briefly explain the implication
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