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06-06-2023
Business

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The market for drones is perfectly competitive. Assume for simplicity that fractions of everything, including firms, is possible. We have identical firms, each with a Total Cost curve of TC=296+83q+q^2 and Marginal Cost curve MC=83+2q. Market demand is Q-729-2P. What is the Average Variable Cost if the firm produces 24 units?

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