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Price and Output Determination
Cold Case, Inc., produces beverage containers used by fast food franchises. This is a perfectly competitive market. The following relation exists between the firm's beverage container output per hour and total production costs:
Total TotalOutput Cost0 $ 351,000 852,000 1453,000 2154,000 2955,000 3856,000 4857,000 610
A. Make a table showing the marginal cost of paper cup productions.
B. What is the minimum price necessary for company to supply one thousand cups?
C. How many cups would the company supply at industry prices of $75 and $100 per thousand?
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