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Below is the cost structure for a typical firm in this market along with the supply and demand for the market. Assume all firms have identical cost structures. Determine: A.) The optimal short-run production position for the firms. B.) Is there a profit or loss? Calculate it. C.) What is the optimal number of firms in the short run? D.) In the long run how many firms will there be? E.) Calculate the long run profit for a typical firm. These are the given equations: P= -1/4Q+20 P= 1/4Q
The problem is that even though you have assigned values of a,b,c, SN thinks that f is also a function of t, for which you have not assigned a value.
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