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Consider the average variable cost (AVC) function of a company as AVC = 5q 2 . It is known that the market is competitive and

Consider the average variable cost (AVC) function of a company as AVC = 5q2. It is known that the market is competitive and there're 10 firms identical in costs. The fixed cost (FC) is 150. If the market demand is P = 100 - Q.

a) Find the supply function of a firm and that of the market.

b) Find the level of production that maximizes the profit of each firm.}

c) Find the equilibrium price and quantity

d) Estimate the profit of each firm

e) Given the profit achieved by each firm, should it continue to produce, and why?

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