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The market for calculators is a perfectly competitive industry facing typical U-shaped ATC, AVC, and MC cost curves. Demand is linear and has a downward
The market for calculators is a perfectly competitive industry facing typical U-shaped ATC, AVC, and MC cost curves. Demand is linear and has a downward slope. Using a side-by-side graph that depicts both the market (on the left) and a representative firm (on the right), graphically depict this original short run equilibrium (SRE), showing P (price), Q (market output), q (representative firm's output), and (representative firm's profit). Clearly label and explain your graph, as necessary.
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