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An industry has 50 perfectly competitive firms, which have the cost function c(y)= 100 + 0.25y2. a. What is the lowest the price can fall

An industry has 50 perfectly competitive firms, which have the cost function c(y)= 100 + 0.25y2.

a. What is the lowest the price can fall in the short run before the average firm will exit? (2 marks)

b. Find the short-run supply function. (3 marks)

c. Find the price of y in the long run. (4 marks)

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