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MC ATC AVC ------- ------- ------- If the market price is $52, how much will the firm produce to maximize profit? What is th

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Answer #1

Price = 52

Profit is maximised where price = MC

So the nearest possible MC is 50

If Q = 1 , total revenue = 52 , total cost = 150, loss = 98

If Q = 5, total revenue = 260, total cost = 62*5 = 310, loss = 50

So minimum loss is at Q = 5

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