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consider a model of increasing returns to scale with symmetric firms: Algebraically show what the equilibrium number of firms price and average cost must be
consider a model of increasing returns to scale with symmetric firms:
Algebraically show what the equilibrium number of firms price and average cost must be in terms of their equations:
you may start with the equations relating price to the number of firms P= c + 1 /(b*n) & AC to the number of firms AC = (F*n)/s + c
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