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Suppose a monopolist competitor in long run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table:
Suppose a monopolist competitor in long run equilibrium has a constant marginal cost of $6 and faces the demand curve given in the following table:
Q 0 1 2 3 4 5 6 7 8 910
p 30 27 24 21 18 15 12 9 6 3 0
A) What output will the firm choose?
b) What will be the monopolistic competitor's average fixed cost at the output it chooses?
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