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Given the below Data , and assuming total fixed cost is 60 Quantity Total variable cost 0 0 1 25 2 40 3 60 4

Given the below Data , and assuming total fixed cost is 60

Quantity

Total variable cost

0

0

1

25

2

40

3

60

4

90

5

130

6

185

How many units should the firm produce at a price of $30 and a price of $55?

What is the total revenue and total cost at each price ?

What is the profit at each price level ?

Indicate whether you agree or disagree with the following statements. Explain your answers:

Increasing retunrs to scale refers to a sitiuation where an increase in a firms scale of production leads to higher costs per unit produced.

Constant returns to scale refers to a sitiuation where an increase in a firms scale of production has no effect on costs per unit produced

Decreasing returns to scale refers to a sitiuation where an increase in a firms scale of production leads to lower costs per unit produced.

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