Suppose that the market demand curve facing the incumbent firm is p = 460 - 0.5y....

Suppose that the market demand curve facing the incumbent firm is p = 460 - 0.5y. The firms total cost curve is c(y) = 100y. The incumbent firm is threatened by a potential entrant, which faces a fixed entry cost K in addition to the variable cost. The entrant's total cost is therefore c(y) = K + 100y .Find the limit output YL

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Rahul Sunny answered 1 month ago

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