Essay
There are 6 competitive firms in an industry, each with TC = q2 + 2q + 100.
i)What are the shut down price and the break- even price for a firm in this industry? ii)Explain how a firm could want to operate even if it would lose money by doing so. iii)What is the equation for the market supply curve?
iv)If demand is given by P = 34 - Q, what will be the market price in the short run?
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i)Break- even price is where ATC and MC ...View Answer
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