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4. Assume the market for tortillas is perfectly competitive. The market supply and demand curves for tortillas are given as follows: Supply curve: P =
4. Assume the market for tortillas is perfectly competitive. The market supply and demand curves for tortillas are given as follows: Supply curve: P = 0.0000026) Demand curve: P = 11 0.0000262 The short run marginal cost curve for a typical tortilla factory is: M0 = 0.1 -| 0.000962 a) Determine the equilibrium price for tortillas. b) Determine the prot maximizing short run equilibrium level of output for a tortilla factory. c) At the level of output determined above, is the factory making a prot, breaking-even, or making a loss? Explain your answer. d) Assuming that all of the tortilla factories are identical, how many tortilla factories are producing tortillas
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