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Suppose a firm in a perfectly competitive market has the cost function c(y)= y2 + 2y +4 Now suppose that there is a sudden in

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Answer #1

Answer:

Given:

C(y) = y ² + 2y + 4

MC = d(C(y)) / dy

= 2y + 2

MC = P

2y + 2 = 8              (Given: P = $8)

2y = 6

y = 3

The firm produce at this price is 3 units

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