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Suppose a Perfectly Competitive Firm Has the Short- Run Cost

Question 92

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Suppose a perfectly competitive firm has the short- run cost function C(y)= 125 + y2. Use the derivative formula or marginal cost to determine the firm's output level and profit at prices of $30 and $20. At what price does the firm reach the shut- down point?

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The marginal cost equation is MC=2y. Whe...

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