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Given the Following Data for a Perfectly Competitive Firm, What

Question 53

Multiple Choice

Given the following data for a perfectly competitive firm, what is the amount of profit the firm will make at the profit maximizing output?
P = MR = $100
TC = 1,000 + 125Q - .5Q2
SMC = 125 - Q
Q = units produced per month
TFC = $1000


A) none - the firm would shut down
B) $1,312.50
C) $2,548.63
D) -$1,425.86
E) -$2,351.27

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