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Boxes of golf balls are sold in a perfectly competitive industry. Suppose a representative firm's marginal and average costs are given by the formulas MC
Boxes of golf balls are sold in a perfectly competitive industry. Suppose a representative firm's marginal and average costs are given by the formulas MC = U.5q+10 and AC = 0.2591 -l- 10 + 930, where q represents the quantity supplied by the rm. (a) What is the quantity supplied by each rm (:1) in long-run equilibrium? 60 boxes. (b) What is the rms' break-even price? $ 40 (0) Suppose the market demand for the good produced by this industry is given by the formula 05:5.500-25P (or P = 220 - .040) where P is the market price and Q is the market quantity. if the industry is in a long-run competitive equilibrium. what will be the market quantity? 4500 boxes. (d) How many rms (n) will be in the industry? 75 (e) Derive the market supply curve. 05
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