In the given graph, where will the firm produce?
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80) In the Nash equilibrium to the game where each firm decides whether to produce g = cartel share or q = 4, A) both firms will produce q = cartel share. B) Firm A will produce g = cartel share and Firm B will produce q = 4. C) Firm A will produce q = 4 and Firm B will produce g = cartel share. D) both firms will produce q = 4. E) there is no Nash equilibrium to this game so the question doesn't have an answer.
Suppose that the market for microwave ovens is a competitive market. The following graph shows the daily cost curves of a firm operating in this market.
1) For each price in the following table, calculate the firm's optimal quantity of units to produce, and determine the profit or loss if it produces at that quantity, using the data from the graph. Assume that if the firm is indifferent between producing and shutting down, it will produce. Assume all costs are in dollars.
2) What is the firm's shutdown price (where it is optimal for the firm to shut down)?
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