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Question: There are 40 identical firms in a competitive market, and there are no entry or exit barriers. Eachcompetitive firm has a cost function C(q) = 32 + 2q2. The market demand is given by Q = 200 -10p.
a. Derive each competitive firm's supply function (the firm's optimal output q as a function ofthe market price p).
b. What is the market supply function?
c. What is the equilibrium price and quantity in the market?
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