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The town of Temperance initially allows only one beverages. A pint of beer sells for $6.00 and costs the average cost to the seller is

The town of Temperance initially allows only one beverages. A pint of beer sells for $6.00 and costs the average cost to the seller is $0.75. Suppose the town repeals this restriction based on a study that estimates that each new establishment will result in a reduction of $0.50 in the price of a beer while raising average costs by $1.25. How many establishments will here be in equilibrium under these conditions

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