Consider a firm in each of the following three situations. For each situation, carefully explain whether the
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Situation 1 Situation 2 Situation 3 $10 Price $10 $10 1,000 Quantity 1,000 1,000 $5,000 Variable cost $5,000 $11,000 $5,000 Fixed cost $6,000 $5,000 Marginal cost of 1,000th unit $10 $10 $10
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