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ECO - A purely competitive firm finds that the market price

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Question;A purely competitive firm finds that the market price for its product is $20. It has a fixed cost of $100 and a variable cost of $10 per unit for the first 50 units and then $25 per unit for all successive units. *Does price exceed average variable cost for the first 50 units? What about for the first 100 units?*What is the marginal cost per unit for the first 50 units? What about for units 51 and higher?*For each of the first 50 units, does MR exceed MC? What about for units 51 and higher?*What output level will yield the largest possible profit for this purely competitive firm?

 

Paper#57308 | Written in 18-Jul-2015

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