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Suppose a firm operates in a perfectly competitive market. Suppose P=20 and MC=10Q. We also know that the total cost function is equal to 40+5Q^2

Suppose a firm operates in a perfectly competitive market. Suppose P=20 and MC=10Q. We also know that the total cost function is equal to 40+5Q^2 whether the firm operates or not. In other words, the $40 fixed costs cannot be avoided even if the firm exits the market. What is the optimal Q? Hint - don't forget the shutdown condition choose the correct option:

1) 0

2) 5

3) 4

4) 2

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