Suppose a perfectly competitive firm produces 40 units of output per-period (e. g., daily) and sells all units for the market price of $6. if average fixed cost is $2, average variable cost is $1, and marginal cost is $6, then the firm:
i. is maximizing total profit by producing and selling 40 units of output
ii. earns a per-period total profit of $120
iii. earns a per-period total profit of $240
iv. should close down in the short run and suffer a loss equal to $80
Answers: 1
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Answers: 1
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Suppose a perfectly competitive firm produces 40 units of output per-period (e. g., daily) and sells...
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