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An industry has 100 firms. These firms have identical production functions. In the short run, each firm has fixed costs of $200. There are two
An industry has 100 firms. These firms have identical production functions. In the short run, each firm has fixed costs of $200. There are two variable factors in the short run and output is given by y = (min{x1, 4x2}) 1/2 . The cost of factor 1 is $2 per unit and the cost of factor 2 is $4 per unit. Find the industry supply curve in the short run.
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