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ePack: Principles of Microeconomics 6th Edition by Gregory Mankiw
Edition 6ISBN: 978-1133150558ePack: Principles of Microeconomics 6th Edition by Gregory Mankiw
Edition 6ISBN: 978-1133150558 Exercise 3
You are hired as the consultant to a monopolistically competitive firm. The firm reports the following information about its price, marginal cost, and average total cost. Can the firm possibly be maximizing profit? If not, what should it do to increase profit? If the firm is profit maximizing, is the firm in a long-run equilibrium?
a. P MC , P ATC
b. P MC , P ATC
c. P = MC , P ATC
d. P MC , P = ATC
a. P MC , P ATC
b. P MC , P ATC
c. P = MC , P ATC
d. P MC , P = ATC
Explanation
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(a)Under the condition Price Marginal Co...
ePack: Principles of Microeconomics 6th Edition by Gregory Mankiw
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