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fQuestion 8 2 pts Those cost functions again! Consider the information in the file called, what else, HW4 cost functions. You need to figure out
\fQuestion 8 2 pts Those cost functions again! Consider the information in the file called, what else, HW4 cost functions. You need to figure out which curve is the marginal cost function and which one is the other function. Suppose that this function pertains to a perfectly competitive firm with no market power. This firm does not incur any fixed cost. For example, it does not pay any interest to any bank or it does not incur any insurance cost. In the real world it is rare for a firm not to face any fixed cost. But for some firms, the fixed cost could be small. In any case let's suppose that this firm does not face any fixed cost. We want to know how this scenario affects the firm's economic decisions. If the market price of this product is $40 per unit, the firm will produce units, making an economic profit of dollars. However, if the market price falls to $20 per unit, the firm will produce units in which case its economic profit will equal dollars. If the market price goes down to $10 per unit, the firm will produce units and its economic profit will be dollars. Finally, if the market price falls to $5 per unit, the firm will produce units and its economic profit will equal dollars
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