Question
In a monopolistically competitive market, the equilibrium price is $21, and each identical firm has a fixed cost of $40 and a constant marginal cost
In a monopolistically competitive market, the equilibrium price is $21, and each identical firm has a fixed cost
of $40 and a constant marginal cost of $1. What is the output level of each producer?
A) q = 1
B) q = 2.9
C) q = 2
D) q = 21
please explain otherwise downvote
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Introductory Econometrics A Modern Approach
Authors: Jeffrey M. Wooldridge
4th edition
978-0324581621, 324581629, 324660545, 978-0324660548
