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Suppose there are n identical firms in a market in long run. Each firms cost function is given by C=32+.5q^2, where q is the amount that an individual firm produces. This means that an individual firms marginal cost is given by MC=q. Also, the market demand is given by P=96-2Q, where Q is the total amount of the good produced by all of the firms combined. Therefore, Q=n*q.
A.) How much output will each of them produce?
B.)What will be the market price?
C.) How many firms operate in the long run?
D.) What is the consumer surplus?
E.) What's the market supply curve
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A small business that has taxable income of less that $50k purchases a machine for $10k. The machine yields an annual benefit of $5k over its 5-year life. Is the after-tax rate of return for this item closer to 5% or 12% Assume a straight-line de..
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