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30 March, 18:17

Assume the demand for shirts is P = 30 - Q, and the cost per shirt is $10. Now assume that there the firm incurs an opportunity cost when it sells a shirt instead of a hat. The optimal quantity of shirts to produce will be:Assume the demand for shirts is P = 30 - Q, and the cost per shirt is $10. Now assume that there the firm incurs an opportunity cost when it sells a shirt instead of a hat. The optimal quantity of shirts to produce will be:

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  1. 30 March, 19:29
    0
    The optimal quantity of shirts to produce will be: Less than 10

    Explanation:

    we know that

    in MR = MC and Q = 10

    opportunity increase MC, towards the lower Q when you repeat condition

    MR = MC.
  2. 30 March, 20:38
    0
    less than 10

    Explanation:

    demand for shirts = P = 30 - Q

    q = quantity of shirts

    p = unit cost price of shirts

    p =

    q = $10

    but optimal quantity of shirt produced after incurring opportunity cost will be

    q ≤ 10

    because MR = MC

    and q = 10

    opportunity cost causes the increase of MC (optimal quantity) towards the lower q
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