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the above graph is a typical firm in a perfectly competitive market, if the market price is 9, then in order to profit maximize it should produce 40 units. True or False

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

If the above graph is a typical firm in a perfectly competitive market, if the market price is 9, then in order to profit maximize it should produce 40 units.

True or False

Price
Cost
9
7
3
20
30 40
MC
AVC
ATC
Quantity

Definition Definition Structure of the market that exists when many buyers and sellers exchange similar commodities and prices are fixed by market forces, demand, and supply. When there is perfect competition, a single business cannot impact the price or market value of the homogenous product.

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