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There arefirms in the market, each of which can produce at a constant average (and marginal) cost of 5. Market demand is given by =
There arefirms in the market, each of which can produce at a constant average (and marginal) cost of 5. Market demand is given by = 53 ,and firms in this market simultaneously set quantities. Calculate how much each firm will produce and the market price as a function of. What happens asgrows very large? How does this compare to a perfectly competitive market?
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