1. Suppose, for a perfectly competitive firm, marginal cost function is given by:
MC = Q2– 2Q + 20
Find the quantity produced (Q) at the equilibrium level of output, if price per unit of good produced is Birr 44
The quantity produced (Q) at the equilibrium level of output is:
P = MC,
Q = 6 units (Q = -4 is unacceptable).
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