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Frm z, operating in a perfectly competitive market, can sell as much or as little as it wants of a good at a price of $16 per unit. its cost function is c = 50 + 4q + 2q2. the associated marginal cost function is mc = 4 + 4q and the point of minimum average cost is q min = 5. a. determine the firms profit-maximizing level of output. compute its profit. b. the industry demand curve is q = 200-5p. what is the total market demand at the current $16 price? if all firms in the industry have cost structures identical to that of firm z, how many firms will supply the market? c. the outcomes in part a and b cannot persist in the long run. explain why. find the markets price, total output, number of firms, and output per firm in the long run. d. comparing the short-run and long-run results, explain the changes in the price and in the number of firms.
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