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A Firm Produces a Product at a Fixed Marginal Cost

Question 6

Multiple Choice

A firm produces a product at a fixed marginal cost of $10 and sells the product on two different markets (A and B) . The demand on market A is QA = 80 - 2P. The demand on market B is QB = 50 - P. What quantity should the firm sell on market A?


A) 20
B) 25
C) 30
D) None of the above is correct.

Correct Answer:

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