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The cost function for a perfectly competitive rm is C(q) = 100 + 2q2. In the short run the $100 xed cost is unavoidable even
The cost function for a perfectly competitive rm is C(q) = 100 + 2q2. In the short run the $100 xed cost is unavoidable even if the rm shuts down. This rm will make a positive prot as long as market price p > $2. This rm will produce in the short run for all p > O. This rm shuts down in the short run if market price p
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