How many firms will there be in the industry

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Now consider what will happen in this industry in the very long run - with technological change. The total cost curve becomes TC = 225 + 10Q + (1/4)Q2 . The MC remains unchanged, and the minimum of the ATC now occurs at a value of $25.

(a) What is the price in the market in this new long run, and what quantity is traded?

(b) What quantity will each firm produce at this price?

Reference no: EM131072349

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