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Subject:EconomicsPrice: Bought3
1. Consider an industry in the U.S. facing aggregate (inverse) demand function:p(y) = 1050 - 5y
The industry is currently in long run equilibrium. The market price is $225 and there are n = 11 firms producing. Each firm's variable cost is:
cv(y) = 1/2 y3
a. What is each firm's fixed cost?
