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Section iV: Problems 19. Suppose there is a competitive industry in which, at this market supply is given by P-100 + Q A) What is the market price and quantity for the product in this market? In this industry, each firm faces a cost structure as follows: TC 100q+ q. Based on this TC structure, Marginal cost 2q+ B) What is the firms profit maximizing quantity of output? C) What is the firms total revenue, total cost and profit? D) Is this a short run equilibrium? E) Is this a long run equilibrium? Explain F) Given your answer in (E), what do you expect to happen as the short run becomes the long run? G) Taking the TC function and generating an ATC function yields ATC = (100 + q + q) / q, where MC = ATC, ATC is at its minimum. 2q 00 q+q) /2 impliesq 10. What is the long run equilibrium price in this market? H) What is the long run equilibrium quantity? I) How many firms will serve this market as close to efficiently as possible?
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1a) Demaud) Mo

answered by: ANURANJAN SARSAM
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