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Short-Run firm Supply.
Mankato Paper, Inc., produces uncoated paper used in a wide variety of industrial applications. Newsprint, a major product, is sold in a perfectly competitive market. The following relation exists between the firm's newsprint output and total production costs:
Total Output (tons) Total Cost ($)
0 25
1 75
2 135
3 205
4 285
5 375
6 475
7 600
A. Construct a table showing Mankato's marginal cost of newsprint production.
B. What is the minimum price necessary for Mankato to supply 1 ton of newsprint?
C. How much newsprint would Mankato supply at industry prices of $75 and $100 per ton?
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