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Suppose a firm has the cost function: c(q) = 5q^2 + 6q + 1. What is the firm's shut-down price? Briefly explain why firms must

  1. Suppose a firm has the cost function: c(q) = 5q^2 + 6q + 1. What is the firm's shut-down price?
  2. Briefly explain why firms must be making zero profit in long-run equilibrium.
  3. When will a profit maximizing firm shut down in the short run? When will the firm exit in the long run?

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