Question: Consider a firm that has cost function C ( q ) which is an increasing function of total output produced q . Assume that the
Consider a firm that has cost function Cq which is an increasing function of total output produced q Assume that the firms marginal cost curve mq has positive slope. a Suppose that output q is sold in a perfectly competitive market. Describe the condition for profit maximization on the part of the firm, and sketch this solution in a graph. b Suppose that output q is sold in a monopolistic market. Describe the condition for profit maximization on the part of the firm and sketch this solution in a graph.
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