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Suppose that the marginal cost of producing output, q, in the short-run for a competitive firm is MC = 10 + 8q. The market price of the firm’s product is $25. a. What level of output will the firm produce to maximize its profits? b. Assume that the firm’s fixed costs are $5, and the firm’s average variable cost is given by AVC = 10 + 4q. What are the short-run total costs at the level of output the firm produces? c.What are the profits in the short-run? d. Show the level of profits in a graph.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91867047

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