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Problem 11) The average cost of producing 500 units of a good is $5 . The firm incurs a fixed cost of $500 In the

Problem 11)

The average cost of producing 500 units of a good is $5. The firm incurs a fixed cost of $500

In the form of rent. If the current price of the good is $10 and the firm increases its sales to 750 units, find the profit earned by the business unit, assuming the marginal cost to be constant.

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