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