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P10. A perfectly competitive firm has the following fixed and variable costs in the short run. The market price for the firms product is $150. a. Complete the table. Output FC VC TC MCTR MR Profit/ Loss $100 100 100 100 100 440 100 $0 100 180 300 600 6100750 b. At what output rate does the firm maximize profit or minimize loss? c. What is the firms marginal revenue at each positive level of output? Its average d What can you say about the relationship between marginal revenue and marginal cost for output rates below the profit-maximizing (or loss minimizing) rate? For output rates above the profit maximizing (or loss minimizing) rate?
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