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a) The graph below shows the market demand curve for automobiles in 1901 in the United Kingdom. Suppose that the least-possible cost of producing a
a) The graph below shows the market demand curve for automobiles in 1901 in the United Kingdom. Suppose that the least-possible cost of producing a car in 1901 is 250. Draw the average total cost curve for a car manufacturer in 1901 assuming that this market is a natural oligopoly with 3 firms. What is the efficient scale of car production a day? What are the reasons that led you to give this answer? (15 Marks) (The response to this question must not exceed 100 words.) Price and cost (pounds per car)
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