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Consider an Industry with Two Firms Producing Similar Products

Question 41

Multiple Choice

Consider an industry with two firms producing similar products.
Mega Corp's total costs are TC = $5,000 + 100 × Quantity.
Big Inc's total costs are TC = $4,000 + 200 × Quantity.
Refer to the information given above.______ has higher fixed costs and ______ has greater variable costs.


A) Big Inc;Mega Corp
B) Mega Corp;Big Inc
C) Big Inc;Big Inc
D) Mega Corp;Mega Corp

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