In Exercise 1, if the fi rm must act as a perfect competitor, in the long run

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In Exercise 1, if the fi rm must act as a perfect competitor, in the long run what will happen to equilibrium price and equilibrium output?

Exercise 1

Consider an HMO with a demand curve of the following form: Q = 100 – 2 P . Suppose  that its marginal and average costs were $20. If the fi rm maximizes profi ts, determine its  price, output, and profi ts.

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The Economics Of Health And Health Care

ISBN: 9781138208049

8th Edition

Authors: Sherman Folland, Allen C. Goodman, Miron Stano

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