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Unformatted text preview: ii. What is the market price? iii. What are the prots (or losses) of each rm? (c) Perfect competition - Long run (harder) i. Would we expect entry into the perfectly competitive market with 6 rms? Why, or why not? ii. How many competitive rms can be sustained in this industry in the long run? (Hint: let the number of rms in the market be n , solve for the competitive equilibrium as before, and think about the long run equilibrium conditions). iii. What about the short run? If there were 10 competitive rms in the market, what would happen in the short run? What about 100 competitive rms? (d) Monopoly i. Suppose there is a single rm operating in the market. How much would the monopolist produce? ii. What is the market price? iii. What are the prots (or losses) of the monopolist?...
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- Three '10