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Assume that the business environment you are studying is a perfectly competitive environment. Within this environment, you are assessing the Kryptonite factory. The factory's cost function can be described as C(Q) = 140 + 28Q + 4Q2. The market price is $180 per unit.
a. Calculate Kryptonite Factory's short run profits. Show all your steps.
b. Assess what will happen in this industry in the long run. Will the industry attract new entrants? Why or why not? Explain fully.
1. using the following fixed basket of goods basket 6 pizzas 12
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