### [solution] » (18) Firm A has excess capacity at Q =   (19) AC is high at this output level

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The Question

(18) Firm A has excess capacity at Q =

(19) AC is high at this output level because average ________ cost is high.

If firm A keeps increasing its output in the short run Average Fixed costs would (20)____  and average variable costs would (21)______ and total fixed costs would (22)______

23) If the price falls below \$________ , in the long run, firm A will shut down.

(24) what kind of industry in Firm A in ?

(25) Firm A would maximize profits at P = \$______  and Q_______

(26) Exactly how much profits is firm A making at the price and quantity you answered for (25) ?

(27) What is the maximum technical efficiency output for this firm?

#### Solution details

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This paper was answered on 14-Oct-2020

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