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Assignment:
Consider a perfectly competitive market for fish, with the (unrealistic) assumption that fishing is non-random and so the individual firm Tim's Fresh Fish has a short-run total cost given by STC(q) = 0.4q2, where q is pounds of fish per day. The competitive market price is $8 per pound.
(a) What is the short-run marginal cost (SMC(q)) of this firm?
(b) What quantity should this firm catch and sell to the market each day to maximize profit?
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