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Consider a market with a large number of firms, an upward sloping supply curve S 0 , and a downward sloping demand curve D 0

Consider a market with a large number of firms, an upward sloping supply curveS0, and a downward sloping demand curveD0. In Question 5, we will start with the assumption that the market is perfectly competitive; hence, the supply curveS0is the sum of the marginal cost curves of all the firms. Here is a representation of that market.

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