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Suppose that a typical firm in a monopolistically competitive industry faces a demand curve given by: q = 60 (1/2)p, where q is quantity sold

Suppose that a typical firm in a monopolistically competitive industry faces a demand curve given by:

q = 60 (1/2)p, where q is quantity sold per week.

The firm's marginal cost curve is given by MC = 60.

  1. How much will the firm produce in the short run?
  2. What price will it charge?
  3. describe the approach you used to arrive at your conclusions.

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