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A competitive market is made up of 100 identical firms. Each firm has a short-run marginal cost function as follows: MC 0.5Q where Q represents units of output per unit of time. The firm's average variable cost curve intersects the marginal cost at a vertical distance of 10 above the horizontal axis.
a. Determine the market short-run supply curve.
b. Calculate the price that would make 2,000 units forthcoming per time period.
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