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A representative firm in a perfectly competitive, constant cost industry has a cost function TC= 100+4Q^2+100Q.
(a) What are this firm fixed cost, variable cost and marginal cost?
(b) What is the long-run equilibrium price for this industry?
(c) If the market demand is Q= 1000-P, how many firms will operate in this long-run equilibrium?
(d) What is the most that this firm would be willing to pay for the exclusive right to use this new technology?
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