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Consider the perfectly competitive market for handmade rugs. The firms in this market are identical and each has a short run total cost function equal

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Consider the perfectly competitive market for handmade rugs. The firms in this market are identical and each has a short run total cost function equal to SRTC = 200 + 5q + 0.5q2, where q is the number of rugs a firm produces. The market price for each rug is equal to $15. Show your work to receive full credit. a) What is the equation for the firm's short-run marginal cost (SRMC) curve. Draw it on a graph with the marginal revenue (MR) curve. Calculate and mark on your graph the profit-maximizing q*

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