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QUESTION 2 Consider a profit-maximizing, perfectly competitive firm that faces a market price of P. Let (1) Q* denote the (positive) quantity that satisfies the

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QUESTION 2 Consider a profit-maximizing, perfectly competitive firm that faces a market price of P. Let (1) Q* denote the (positive) quantity that satisfies the equation P = MC(Q*), (2) Q denote the (positive) quantity that corresponds to the minimum of the ATC curve, and (3) Q denote the (positive) quan- tity that corresponds to the minimum of the AVC curve. The firm's breakeven price (i.e., the price corresponding to the firm's breakeven point) is O MC(Q*) O MC (Q ) O MC(Q)

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