Question: 3. (20 total points) (Tourist-Native Model) Suppose there are 10 identical firms, each of which have a Total Cost function TC = 16 + q,

3. (20 total points) (Tourist-Native Model) Suppose there are 10 identical firms, each of which have a Total Cost function TC = 16 + q, where q is the quantity of output. Thus, the marginal cost of production is MC = 2q. There are 40 consumers. Let a be the proportion informed consumers who know the prices of all 10 firms. 0

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