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Unformatted text preview: Solution: Computation of the firm output level Where the marginal cost is 40 on that level out put is 4 Units Hence the output is 4 units What would its profits be? Solution: Computation of the Profit or loss Given information output level 4 Units Price 40 Per unit Variable cost 30 Per unit Fixed cost 50 In total Profit or loss= Total revenue-Variable cost -Fixed cost Where as Total Revenue $160.00 Variable cost $120.00 Fixed cost $50.00 Profit or loss= $(10.00) Hence the Profit or loss is $(10.00) (Function Key on key board), MC $30 $20 $30 $40 $50...
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This note was uploaded on 08/04/2011 for the course ECN 601 taught by Professor Professor during the Spring '10 term at Grand Canyon.
- Spring '10