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A firm is producing 100 units of its product At this level of output the AVC=$60, and the ATC=$80 The firm is a price taker and the price for its product is $100 Assuming that the firm is maximizing profits and that labor is the only variable input From this information:
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Suppose a monopolist faces a demand curve given by P = 25 ? 1/2 Q and total cost curve given by TC = 100 + 10Q First, use this information to derive equations for marginal revenue, marginal cost, and average total cost Then graph these equations, along with the demand curve Find the profit-maximizing price and output What is the level of profit or loss for the firm at this price?
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