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3. (20 points) Suppose in the short run a perfectly competitive finn has variable cost = dos, and MC = 63 where q is the
3. (20 points) Suppose in the short run a perfectly competitive finn has variable cost = dos, and MC = 63 where q is the quantity of output produced. Alvo, the firm has fixed cost F = 675. 2) (4 points) If the market price of the product is 75, how much output should the fin produce in order to maximize profit () (4 points ) How much profit will this fin make ? c) (4 points) What is the Breakeven price ? d) (6 points ). Suppose there are a identical fans in long run equilibrium. Market Demand is given by ? = 810-3Q where Q is the Market Quantity. So, Q = q*a where a is the number of firms. How many finns will there be in Long Rum Equilibrium (wolve for n)
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