A profit-maximizing firm is producing where MR = MC and has an average total cost of $4,

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A profit-maximizing firm is producing where MR = MC and has an average total cost of $4, but it gets a price of

$3 for each good it sells.

a. What would you advise the firm to do?

b. What would you advise the firm to do if you knew average variable costs were $3.50?

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Microeconomics

ISBN: 9781260507140

11th Edition

Authors: David Colander

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Question Posted: Mar 14, 2024 04:01 AM

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A profit-maximizing firm is producing where MR = MC and has an average total cost of $4,

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Microeconomics

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