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The Short Run total cost curve of a firm in a hypothetical market is given by.
STC=10Q^2+4Q+100
With Short-run marginal cost by SMC=20Q+4
There are 100 firms in the market
Market demand Qd=500-Pmkt
a) What is the shut down price?
b) What is the break-even point of the firm?
c) What is the equation for the firm’s short run supply schedule?
d) What is the short run market equilibrium price?
e) How much does each firm produce?
f) How much profit does the typical firm earn?
In general, the marginal cost curve is U-shaped as you learned in lectures and the textbook. However, exception exists. Please provide one particular industry as an example to illustrate that MC is not U-shaped.
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