Quiz_2_Solutions_301

# Quiz_2_Solutions_301 - Quiz 2 Solutions Sections 301...

• Notes
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TC = V C + FC TC = 1000 + 3(100) = 1300 TR = TC + Π TR = 1300 + 200 P = TR Q = 1500 100 = 15 Since P > MC and marginal cost is upward sloping if we increase quantity then our MC will go up. Optimally, we want P = MC , so we should increase output. (Answer B) 3. The cost curves shown below are for Mysore Woodlands Indian Food, a competitive firm. Currently, Mysore sells 100 meals a day at a price of \$6 per meal.
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