Multiple Choice
Suppose that a perfectly competitive firm's AVC curve is given by AVC = WQ, and its marginal cost curve is given by MC = 2WQ, where W is the wage rate. Assume W = 20. At a market price of $3,200, the firm will produce a quantity of ____ to maximize profit.
A) 200
B) 160
C) 120
D) 80
Correct Answer:
Verified
Correct Answer:
Verified
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