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Questions: 1) Firm A is a small perfectly-competitive rm. The current market price for the output broduced by Firm A is $20 per unit. Firm

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Questions: 1) Firm A is a small perfectly-competitive rm. The current market price for the output broduced by Firm A is $20 per unit. Firm A borrows the capital it uses for production from a similar company at zero cost, and its total costs are represented by the following function: TC = 0.11:}!2 + 10:] + 50, Firm A's marginal costs by MC = 0.21:; + 10. a) How many units should Firm A produce to maximize prot? How much is its prot? Support your answers with calculations. b) If Firm A is suddenly charged $100 per week for the capital it uses, how will this change affect the number of units it produces? How will it affect its prot? Support your answers with calculations. 0) If instead of being charged $100 per week for the capital it uses, Firm A is charged $2 per unit of output it produces. This change in costs changes the rm's marginal cost to MC = 0.2:] + 12. How will this change affect the number of units it produces? How will it affect its prot? Support your answers with calculations

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