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For a Perfectly Competitive Firm STC=100+20q+q2 and SMC=20+2qS T C = 100 + 20 q + q ^ { 2 } \text { and } S M C = 20 + 2 q

Question 23

Multiple Choice

For a perfectly competitive firm, STC=100+20q+q2 and SMC=20+2qS T C = 100 + 20 q + q ^ { 2 } \text { and } S M C = 20 + 2 q , where q is output. If the market price is equal to 40, at what level of output should the firm operate to maximize profit in the short run?


A) 10
B) 20
C) 30
D) 40

Correct Answer:

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