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The following figure represents relevant data for a firm in a perfectly competitive industry. Use it to answer the next 5 que
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Answer #1

25. Option C. $150

Explanation:

At 20 units, ATC = $16 and AVC = $8.5

So, TC = $16 * 20 = $320

TVC = $8.5 * 20 = $170

So, fixed cost = TC - TVC = $320 - $170 = $150.

26. Option C. $11

Explanation: In a perfectly competitive firm, the market price equals the marginal revenue.

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