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Please help with the following: Assume the individual producers in this industry have no control over prices; they must accept the exogenously given price, P0.
Please help with the following:
Assume the individual producers in this industry have no control over prices; they must accept the exogenously given price, P0.
On a graph containing the four curves MC, AFC, AVC, and ATC, depict the profit-maximizing output for this firm under the assumption that the exogenously given price of P0 is sufficiently high to allow the producer to arrive at an optimal output, q0, that results in positive profits.
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