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Supply Curve Assignment | Homework For You

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February 21st, 2020

Suppose all firms in a given industry have the same supply curve given by S(p) = p/2.Homework For You

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a) Plot and label the four industry supply curves generated by these firms if there are 1, 2, 3, or 4 firms operating in the industry.

b) If all of the firms had a cost structure such that if the price was below $3, they would be losing money, what would be the equilibrium price and output in the industry if the market demand was equal to D(p) = 6? How many firms would exist in such a market? Get Economics homework help today

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