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Monopolistic competition model
TC = F + c.q where TC is the total cost, F is the fixed cost and q is the output of the firm. q = S[1/n - b(P- Pbar)] where S is the market size, n is the number of firms, P is the price charged by an individual firm and Pbar is the average price in the market.
Suppose F = 750,000,000, c = 5000, S = 900,000, b = 1/30,000.
Find the values of the following variables in a long-run equilibrium of this monopolistically competitive market: P, q, and n.
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