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Consider an industry with identical firms and production function y= (x1 2 + x2 2 ) 1/2 The demand function is q(p) = a bp,
Consider an industry with identical firms and production function y= (x12 + x22)1/2
The demand function is q(p) = a bp, where a > 0, b > 0. Compute the long run equilibrium number of firms in the market, and the quantity of output that each firm produces.
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