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Correlation between marginal cost and average cost

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Reference no: EM131916613

1. Provide an example of correlation between 'marginal cost' and 'average cost."

2. Explain why "profit maximization" leads to different price depending on whether the market is "perfect competition" or "monopolistic competition."

3. Provide an example of 'positive' "externality" and an example of 'negative' "externality." Explain the effect in terms of "market failure" of each example.

Reference no: EM131916613

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