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Suppose consumers see coffee as an undifferentiated good and hundreds of coffee shops are in the market. The market price of a cup of coffee
Suppose consumers see coffee as an undifferentiated good and hundreds of coffee shops are in the market. The market price of a cup of coffee is $3. Carly's coffee shop has a daily short-run total cost given by = 5 + 1/4Q2. The associated marginal cost curve is = 1/2Q How many cups of coffee should Carly make a day if she wants to maximize profits?
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