In Exercise 1, if the fi rm must act as a perfect competitor, in the long run

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In Exercise 1, if the fi rm must act as a perfect competitor, in the long run what will happen to equilibrium price and equilibrium output?

Exercise 1

Consider an HMO with a demand curve of the following form: Q = 100 – 2 P . Suppose that its marginal and average costs were $20. If the fi rm maximizes profi ts, determine its price, output, and profi ts.

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The Economics Of Health And Health Care

ISBN: 9781138208049

8th Edition

Authors: Sherman Folland, Allen C. Goodman, Miron Stano

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Question Posted: Jan 29, 2024 03:05 AM

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Consider an HMO with a demand curve of the following form: Q = 100 2 P . Suppose that its marginal and average costs were $20. If the fi rm maximizes profi ts, determine its price, output, and profi...
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In Exercise 1, if the fi rm must act as a perfect competitor, in the long run

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ANSWER Q 1002P or P 50 12Q MCAC20 Condit...View the full answer

The Economics Of Health And Health Care

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