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Suppose there are two firms in the market of good X. The cost function of firm 1 is C1(q) = 2q ^2 + 100, whereas
Suppose there are two firms in the market of good X. The cost function of firm 1 is C1(q) = 2q ^2 + 100, whereas the cost function of firm 2 is C2(q) = 3q^2 + 40. Suppose the firms operate in a perfectly competitive market and face a perfectly elastic demand at P = 24. Find the equilibrium quantity produced in this market. (Hint: Obtain the inverse supply curve and add horizontally.)
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