Find the long run market price

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Suppose a ?rm’s produces computers and its associated costs are only function of the numbers of computers its produces. The cost function is given by C(y) = y3−8y2+32y

(a) Find the long run market price that prevails if this ?rm is operating in a perfectly competitive market.

(b) Derive the shut-down condition for the general case (see your notes), where pro?ts are given by π = py−C(y), and C(y) = Cv(y)+F. An answer with just maths is not enough, tell me the intuition behind the condition

Reference no: EM131377246

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