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Consider a firm in a market that is in a long-run, perfectly competitive equilibrium. If the firm has total costs of C(q) = 1
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the long-run equilibrium price is equal to the minimum average total cost and the average total cost quantity is found by the first differentiation of ATC equating to zero.

ATC = TC – 100 – ? DATC 180 40 q = q2 + 40 = 0 1001 240 q2 = 40 * 100 = 4000 9 = 63.2455532 63.2455532 100 P = ATC = 63.24555

the price is $3.16

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