How much should the firm produce to maximize profits

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Suppose the market for cotton is perfectly competitive. A representative firm's short-run marginal cost is given by SRMC=5+Q, while their minimum average variable cost is $7. If the market price of cottion is $20 per unit, how much should the firm produce to maximize profits? If the market price of cotton is $10 per unit, how much should the firm produce to maximize profits? If the market price of cotton is $6 per unit, how much should the firm produce to maximize profits?

Reference no: EM13221144

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