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Two firms, p and q operate in two different differentiated goods markets. The total cost functions corresponding to each firm are given below: [Total Marks
Two firms, p and q operate in two different differentiated goods markets. The total cost functions corresponding to each firm are given below: [Total Marks = 30 marks] - Firm p: C = 4Q - Firm q: C = 10 + 4Q You are also told that each of the two firms have maximum production capacity of 40,000 (max quantity) which is produced in batches of 4,000. Use relevant plots of the Cost functions for the two firms above to explain the relationship between each firm's marginal cost curve and the zero-profit isoprofit curve
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