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1.      In the long-run equilibrium of a competitive market, the market supply

and demand are:

           Supply:            P = 20 + 0.50Q

           Demand:         P = 50 - 1.5Q,             

where P is dollars per unit and Q is rate of production and sales in hundreds of units per day. A typical firm in this market has a marginal cost of production expressed as:

           MC = 2.0 + 15q. 

a.  Determine the market equilibrium rate of sales and price.

b.  Determine the rate of sales by the typical firm. 

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