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The minimum average total cost of the high-cost producers is $150. The low-cost producers have a long-run total cost curve given by LTC = 150Q
The minimum average total cost of the high-cost producers is $150. The low-cost producers have a long-run total cost curve given by LTC = 150Q - 15Q2 0.4Q3 , where LMC = 150 - 30Q 1.2Q2 . How much economic rent does the low-cost producer earn? a. $3,125 b. $14,000 c. $710 d. $45,000
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Microeconomics and Behavior
Authors: Robert Frank
9th edition
9780077723750, 78021693, 77723759, 978-0078021695
