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Suppose you are asked to analyze a competitive market with identical firms for the government. You estimate the following: Inverse market demand is: p =

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Suppose you are asked to analyze a competitive market with identical firms for the government. You estimate the following: Inverse market demand is: p = 100 - 0.01Q, The long-run market supply is: P = 10 Each firm's total cost function is: C(q) = 500 + 0.05q2 What is the marginal cost faced by each firm? MC = .10 Assuming the industry is in long-run equilibrium, how many firms are currently in this market? (enter your answer rounded to the nearest whole number). Now suppose the government is thinking of restricting the number of firms to only seven. At what quantity will the long-run inverse market supply curve go from being horizontal to upward sloping? The long-run inverse market supply curve will become upward sloping at a quantity of |. (Enter your answer as a whole number.)

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