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Unformatted text preview: For Part (A) P TR TC TFC = $1 Q Max 2 Bottles Q 0 (C) Ï TFC does not ∆ output choice. Still MR = MC @ 2 units. But the firm now has TC = TR = $12 ( Ï TFC = $5) and breaks even. If TFC Ï BY $10, then firm loss minimizes at MR = MC @ 2 units (see table below) Q New Total Profit or Loss 0 - 11 1 - 5 2 - 5 3 - 11 4 - 23 5 - 41 $ MR ATC z $3.50 P Max $6 Q Max 2 Bottles Q 0 z A B MC AVC P=AR=D...
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This note was uploaded on 10/26/2009 for the course ECON 180-004-20 taught by Professor Bresnock during the Fall '09 term at UCLA.
- Fall '09