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Question 2 (20 pts) In an industry there are N firms producing a homogeneous product. Let qi denote the output level of firm i, and Q denote the aggregate industry production level. That is, QAssume that the demand curve facing the industry is p 100 Q. Suppose that the cost function of each firm i is given by C(g) ifq0 a. Calculate the output and profit levels of each firm in a symmetric equilib- rium. b. What happens to profits as N increases? Show your work in detail
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