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Short-Run firm Supply.

Mankato Paper, Inc., produces uncoated paper used in a wide variety of industrial applications. Newsprint, a major product, is sold in a perfectly competitive market. The following relation exists between the firm's newsprint output and total production costs:

Total Output (tons) Total Cost ($)

0 25

1 75

2 135

3 205

4 285

5 375

6 475

7 600

A. Construct a table showing Mankato's marginal cost of newsprint production.

B. What is the minimum price necessary for Mankato to supply 1 ton of newsprint?

C. How much newsprint would Mankato supply at industry prices of $75 and $100 per ton?

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