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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 if the firm chooses to operate, but to 0 if the firm closes down. What is the optimal Q? Hint - don't forget the shutdown condition Question 9 options: 4 0 5 2
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Economics
Authors: John Sloman, Jon Guest, Dean Garratt
10th edition
1292187859, 9781292187907 , 978-1292187853
