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Consider the perfectly competitive market for printer paper. In this market, the long-run average cost is minimized at $2.00 per box at a quantity of
Consider the perfectly competitive market for printer paper. In this market, the long-run average cost is minimized at $2.00 per box at a quantity of 2000 boxes per month. The market demand for 60000 P of paper. If we assume all rms have the same costs and that costs do not change as rms enter or a pack of printer paper is: Q = where P is the price in dollars and Q is the quantity in boxes exit, then how much will all consumers in the market spend on boxes of printer paper each month? O$0 0 $4000 Q $30,000 O $60,000 O Impossible to answer because we do not know the price per box of paper
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