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The production manager of a clothing manufacturer estimates that the total annual cost of producing suits is given by the equation ????= 5000 + 4100????
The production manager of a clothing manufacturer estimates that the total annual cost of producing suits is given by the equation
????= 5000 + 4100???? 8????^2 + 0.004????^3
a) If the market price of suits is constant, what is the short run shutdown level of output?
b) In the short run, what is the minimum price the firm can accept?
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