1 Consider a competitive firm with these cost functions: AC = (q-2)2 + 5 MC = 3q2...
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Question:
1 Consider a competitive firm with these cost functions:
AC = (q-2)2 + 5 MC = 3q2 - 8q + 9
a In the LR, what q will the firm produce? What P will the firm charge?
b In the LR, what will the firm make? Evaluate their efficiency & CS.
If the firm becomes a monopoly with the above cost function and faces
D: P = 100 - Q MR = 100 - 2Q
c What happens to Q? What happens to P?
d What happens to ? What happens to their efficiency? Market CS?
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