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4. (7 points) The fresh cut rose industry in the US is perfectly competitive. The long run marginal cost curve is MC(Q)=20+2Q. The corresponding long-run

4. (7 points) The fresh cut rose industry in the US is perfectly competitive. The long run marginal cost curve is MC(Q)=20+2Q. The corresponding long-run average cost is given by AC(Q)=20+Q+144/Q. The market demand is Q=2488-2P.What is the long run equilibrium price in this industry? At this price, how much would an each individual firm produce? How many active producers are in the industry in long run competitive equilibrium?

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