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Suppose that, In the long run, a dairy's variable costs are VC = 2Q-(where @ is the number of gallons of milk produced each day),
Suppose that, In the long run, a dairy's variable costs are VC = 2Q-(where @ is the number of gallons of milk produced each day), Its marginal cost is MC = 4@ and there is an avoidable fixed cost of $50 per day. In the long run there is free entry into the market. The long run market supply curve Is: Multiple Choice O vertical at 5 gallons per day. O horizontal at $100 per gallon. O horizontal at $50 per gallon. O horizontal at $20 per gallon
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