Comparing their combined output with the output when the mc, Econometrics

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Comparing their combined output with the output when the mc

Consider the example developed in Section 11.5, assuming this time that firm A has a MC of $4 per unit, and B has a MC of $6.

(a) Compute the level of output each will produce

(b) Compute the total output produced by both firms.

(d) Comparing their combined output with the output when the MC of each firm is $6, explain why the totals differ.

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Econometrics: Comparing their combined output with the output when the mc

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Econometrics: Comparing their combined output with the output when the mc

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