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25 February, 18:21

Suppose that the market for ice cream sandwiches is perfectly competitive. Firms that produce ice cream sandwiches are identical; their long-run cost functions are given by. Market demand is.

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  1. 25 February, 21:52
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    The long-run price is the minimum average total cost and it is found by equating the first differentiation of ATC equal to zero.

    The price is $87.75

    b)

    Q=6000-P

    P=87.75

    Q=6000-87.75

    Q=5912.25

    the total industry output is 5912.25 units

    c)

    Number of firms = total industry output / one firm output = 5912.25/1.5

    =3941.5

    The number of firms is 3941.5
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