Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
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Question
Chapter 25, Problem 9E
To determine
To compute:
The profit-maximizing output for the firm if MC=$10 at all levels of output.
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Would a cost function of 0 mean a linear line of supply curve?
For example if 10 firms are on the market selling 10 goods and the cost function is 0?
Will a profit-maximizing firm in a competitive market ever produce a positive level of output in the range where the marginal cost is falling? Give an explanation.
explain why a firm might want to produce its good even after diminishing marginal returns have set in and marginal cost is rising ?
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