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Unformatted text preview: Therefore, Q = n*q. a) How much output will each firm produce? q = 5 b) What will be the market price? P = 200 c) How many firms will there be in long run equilibrium? n = 10 2. (8 points) Suppose a firm has fixed costs in the short run of 432. Also, its variable costs are given by VC = 12q 2 . The firms marginal cost is MC = 24q. What is the break-even price for the firm? BE Price = 144...
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This note was uploaded on 12/18/2008 for the course ECON 302 taught by Professor Kurrejamesantho during the Fall '08 term at Pennsylvania State University, University Park.
- Fall '08