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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 69

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 . If the market price is equal to 40, what is the maximum profit the firm can earn?


A) 400
B) 200
C) 100
D) 0

Correct Answer:

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