Compute the firms profit or loss

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Reference no: EM1374339

Suppose the following cost functions of a perfectly competitive company?

Marginal Cost= MC = 6q + 20

Average Total coat = ATC = 20 +3q + 10/q

Assume the price is P=$28

A) Determine the profit maximizing output for Q

B) Compute the firms profit or loss, should firm shut down if loss?

C) Compute producer surplus, how much is the difference between the producer surplus and profit in this case?

Reference no: EM1374339

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