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The Demand for the Output of a Multi-Firm Industry Is

Question 17

Multiple Choice

The demand for the output of a multi-firm industry is QT = 50 !2.5P. The total cost of production of an individual profit-maximizing firm in this industry is TC1= 4Q1. If this industry is comprised of 3 firms, firm 1's profit is about:


A) $2.
B) $3.
C) $6.
D) $8.
E) $10.

Correct Answer:

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