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1. Suppose in a perfectly competitive industry the market demand and supply forces combine to produce a short-run equilibrium price of Rs 70. Suppose that a firm in this industry has a weekly total cost function expressed by the equation TC = 200 + 25Q - 6Q2 + 1/3Q3. Determine the perfectly competitive firm's profit maximizing output rate and the amount of its short-run profits or losses.
2. A competitive firm's total revenue is Rs 100, its total cost is Rs 120 and its total fixed cost is Rs 40. Should the firm stay in business? Why?
Fundamental of managerial economic
#question.meaning of isoquants and its types
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