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The values for the long-run ATC curves of three different firms are listed in the table below:
Quantity
ATC 1
ATC 2
ATC 3
5
10
7
12
8
6
9
15
20
25
30
4
35
13
40
17
(a) Which firm faces the lowest minimum ATC?
(b) Which firm has the greatest minimum efficient scale?
(c) Which firm has the smallest economies of scale?
Assume the firms cost function is: C(Q)= 100+10Q+Q^2 , Determine whether this industry is a natural monopoly when the demand function is: 1) D(P)= 100-3P 2) D(P)= 90-3P 3) D(P)= 10
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