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The graph below shows the average total cost and marginal cost curves of a perfectly competitive firm. If the market price is

A. Q=4


B. Q=8


C. Q=10


D. Q=12

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Answer #1

Setting P = MC for profit maximization

Setting P = MC = 7, output level = 10 units

option C is correct answer ie. Q =10

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A. Q=4 B. Q=8 C. Q=10 D. Q=12 The graph below shows the average total cost...
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