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Consider the Following Model for the Production of Refined Oil

Question 20

Multiple Choice

Consider the following model for the production of refined oil: MSC = 10 + 0.5Q; MEC = 0.3Q;
MSB = 30 - 0.3Q; MEB = 0. Use these relationships to answer any or all of Questions.
-Based on the model, the competitive price level is


A) PC = $18
B) PC = $20
C) PC = $25
D) PC = $40

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