Avoidable fixed cost, Suppose that, in the long run, a

Avoidable fixed cost

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Suppose that, in the long run, a pizza firm’s variable costs are V C(Q) = Q2/2 (where Q is the number of pizzas produced each day), its marginal cost is MC(Q) = Q, and there is an avoidable fixed cost of $50 per day. In the long run, there is free entry into the market.

What is the long-run market supply function?

Reference no: EM13914289

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