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Q. Suppose a firm is operating under a competitive market conditions and going price for its product is $260. If firm's short run Total Variable Cost (TVC) function is
TVC = 80Q - 6Q2 + 0.2Q3 Total fixed is cost = $1000
Illustrate what is firm's profit maximizing output? Explain how much profit will firm make?
The payoff matrix of economic profits above displays the possible outcomes for Bob and Jane who are involved in game of whether or not to advertise.
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