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2) Partial Equilibrium Suppose there is an economy with only two consumers. Both have identical preferences: U(q, t) qVzt1/2. The first individual has an income of S3600, while the second agent has an income of S7200. The price of good t is fixed at a) Find the Marshallian demands for q for each type. (6 points) b) Find the market demand for q (remember P-1). (6 points) The market for q is perfectly competitive with many identical firms each with a production function: q-f(k,l) min k12,1/2). Each firn hires workers at w-1 and rents capital at v-2. In addition, they have a fixed cost equal to $27 (this means that you need to add 27 to wl+vk). c) Find the total cost function of each firm. (7 points) d) Find the long-run equilibrium quantity that each firm will produce. (8 points) e Compute the equilibrium quantity produced by the entire market and the number of firmsplz explain the steps

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