Fixed costs of production in a competitive industry

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If there are fixed costs of production in a competitive industry, the q that solves the firm’s first-order condition

(a) will also solve the firm’s second-order condition.

(b) is the q that leads to the highest possible consumer surplus.

(c) is the same as the q that minimizes AC and AVC.

(d) is the same as the q that minimizes only AC.

Reference no: EM13996097

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