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Assume that all firms i in this market offer a homogeneous good and have the following identical total cost function: TK(Qi) = 0.25Qi^2 + 64
Assume that all firms i in this market offer a homogeneous good and have the following identical total cost function:
TK(Qi) = 0.25Qi^2 + 64 (where Qi is the output of firm i).
Let the market demand function be: QD = 72 - P (with QD the quantity demanded and P the price).
How many firms would operate in this market under full competition in the long run?
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