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Unformatted text preview: The corresponding marginal cost equation is MCj=2*Qj. You may assume the market is perfectly competitive. Please answer the following questions. 1. Derive the demand curve for a typical individual and the supply curve for a typical firm. 2. Derive the market demand and supply curves. 3. What is the equilibrium price and quantity of pizza? 4. How many pizzas does each person buy? How much consumer surplus does each person receive? How many pizzas does each firm produce? How much profit does each firm earn?...
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- Spring '12