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Q. Sunrise Juice Company sells its output in a perfectly competitive marketplace. The industry's total costfunction is given in the subsequent schedule:
Output Total Cost(Units) (RM)0 5010 12020 17030 21040 26050 33060 430Total costs include a "normal" return on the time (labor services) also capital that the ownerhas invested in the industry. The prevailing marketplace price is RM7 every unit.
a. Prepare (i) marginal cost also (ii) average total cost schedules for the industry.
b. Illustrate what is the industry's profit maximizing output level?
c. Is the organization in long-run equilibrium? Justify your answer.
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