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Use the graph to answer four questions. Typical Computer Firm Price or Cost (dollars per computer) $1,400 $1,300 $1,200 $1,10
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Answer #1

A) at profit Maximization

MR = MC

So, MC = 500

Q = 350

B) loss = (ATC-P)*Q

= (625-500)*350

= 125*350

= 43,750

= $ 43,750

c) as losses, so firm will exit

d) exit will lead to rise in price

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