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Consider the Following Model for the Production of Refined Oil π\pi

Question 4

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 firm's M π\pi function must be


A) M π\pi = 20 - 0.8Q
B) PE = $22.50
C) M π\pi = 0.3Q
D) M π\pi = 20 - 0.1Q

Correct Answer:

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