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Consider a competitive firm producing "Baby Yoda" toys. Suppose a firm's fixed cost is $150 and sunk in the short-run. Variable Costs consist of 2 parts, firm must incur cost equal to $50 to start production and pay q2 / 2 to produce q units of output.
1) Derive the short-run firm's supply curve.
2) At which prices will firm produce positive quantity in the long-run?
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