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Question 4. (20 points) Consider the following cost information for a firm that operates in a perfectly competitive market. | Total Q (quantity of output)
Question 4. (20 points) Consider the following cost information for a firm that operates in a perfectly competitive market. | Total Q (quantity of output) cost ($) 0 21 2 31 4 43 6 57 8 75 10 97 12 125 (1) Suppose that the market price is $11. Find the quantity of output that the firm should produce in the short run. (3) Suppose that the market price drops from $11 to $9. Find the quantity of output that the firm should produce in the short run
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