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Question: problem i suppose that in a market of a certain...

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PROBLEM I. Suppose that, in a market of a certain product, there is a single dominant firm with a cost function C(Q)cQ, where c 0 is a constant, and the competitive fringe with a supply function Q(p)p-120. The market demand function is given by QM(P)-600-3p.Q4. Under what condition of c does the competitive fringe produce nothing at the equilibrium? (a) c 240. (b) c 90. (c) c 2 100. (d) 100 cS 40 (e) с 60.

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