Suppose the market for lemonade is a competitive market

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Suppose the market for lemonade is a competitive market. The prevailing market price is $10. A typical seller in the market has a cost function of: C = q3 - 6q2 + l0q + 100

a. Find its profit-maximizing output level. Calculate her profit.

b. What is the lowest price a typical seller is willing to accept in the short run?

c. Given the result in (a),What will happen to the market price in the long run?

Reference no: EM13898390

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