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Quantity Total Cost 0 $8 1 $18 2 $32 3 $48 4 $72 5 $104 6 $144 7 $192 8 $248 9 $312 10 $384
Quantity | Total Cost |
0 | $8 |
1 | $18 |
2 | $32 |
3 | $48 |
4 | $72 |
5 | $104 |
6 | $144 |
7 | $192 |
8 | $248 |
9 | $312 |
10 | $384 |
A. Calculate the average fixed cost of producing four units
B. Identify the profit, maximizing quantity explain using marginal analysis
C. Calculate the economic profit at the profit maximizing quantity you identified in part B
D. Based on your answer to part C will the number of firms in the industry increase, decrease or stay the same in the long run
E. Based on your answer to part, C will the market price increase, decrease or say the same in the long run
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