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Two monopolistically competitive firms face the same demand and total revenue functions but face different total cost functions. These demand, total revenue, and cost functions are given below.
P = 25 - 0.25Q
TR = 25Q - 0.25Q2
Total cost function of firm 1: TC1 = 4,000 + 5Q
Total cost function of firm 2: TC2 = 3,000 + 7Q
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