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A market is supplied competitively by 50 low-cost firms, each with cost curve Cl(q) = 350 + 2q + q2, and n high-cost firms, each with cost curve Ch(q) = 400 + 2q + q2. Market demand is Q = 2500 - 10p. If none of the high-cost firms makes a positive profit, how large is n? How much profit do the low-cost firms make?

Microeconomics, Economics

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