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Suppose the industry cost curve given below. Current market demand is 65 units. Your firm owns production facilities C and F. a. What is your

Suppose the industry cost curve given below. Current market demand is 65 units. Your firm
owns production facilities C and F.
a. What is your current profit? Show your work/justify .
b. Which action would be more profitable for your firm: (i) increasing facility C capacity by
50% or (ii) mothballing (shutting down) facility F? Show your work/justify. Assume the
two actions cost the same.
9".\" Suppose the industry cost curve given below. Current market demand is 65 units. Your firm owns production facilities C and F. What is your current profit? Show your work/justify . Which action would be more protable for your firm: (i) increasing facility C capacity by 50% or (ii) mothballing (shutting down) facility F? Show your work/justify. Assume the two actions cost the same. Average Cost (AC) 20 30 40 50 60 70 8 Total Industry Capacity 30 25 15 13 10 0

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