Long-run perfectly competitive equilibrium

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Reference no: EM131090990

Consider a perfectly competitive equilibrium in which each firm’s long run total cost curve is TC(Q)=Q^3−2Q^2+10Q. For each of the following, explain why it cannot a long-run perfectly competitive equilibrium

(a) P=14; 20 firms producing 2 units each, Q^D=82−3P

(b) P = 12; 50 firms producing 1 unit each, Q^D=167−P

Reference no: EM131090990

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