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Market has a demand for movie subscription services given by Q=100-10P . The firm's cost function is given by C(Q)=Q . ( show all of
Market has a demand for movie subscription services given byQ=100-10P. The firm's cost function is given byC(Q)=Q. (show all of your work)
- Netmovie is the only internet movie provider withTC(Q)=Q. What is the price, the quantity and the profit of the firm in equilibrium?(max. 6 points)
- Suppose now that the market with the demand given above, is a competitive market, and all firms are identical withTC(Q)=Q2, and the equilibrium price isP=2. What is the number of subscriptions a firm will provide?(max. 2 points)
- How many firms are there?(max. 5 points)
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