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Two part question. Use table please.
The price of jeans in a perfectly competitive market is $17. Costs are as follows:
1. What is the profit maximizing rate of output for the firm? What is the profit maximization rule?
2. At what price should the firm shut down? What is the shutdown rule?
Quantity
0
1
2
3
4
5
6
7
8
9
10
Total cost
17
26
37
50
65
82
101
122
145
170
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