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A perfectly competitive firm has the following short-run total cost: Quantity TC 0 E10 E20 2 E26 3 E36 A $50 5 E68 Market demand

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A perfectly competitive firm has the following short-run total cost: Quantity TC 0 E10 E20 2 E26 3 E36 A $50 5 E68 Market demand for the firm's product is given by the following demand schedule: Price Quantity demanded E18 300 E14 400 E10 800 E8 1200 E6 1800 a. Calculate this firm's marginal cost. For all output levels except zero, calculate the firm's average variable cost and average total cost. b. There are 100 firms in this industry that all have costs identical to those of this firm. Draw the short-run industry supply curve. In the same diagram, draw the market demand curve. c. What is the market price, and how much profit will each firm make? d. Will additional producers enter the market? If your answer is an affirmative one, explain how the market and each existing individual firm will respond to the entry

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