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16-02-2024
Business

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Consider the market for good X, which has only two buyers: Andre and Blaise. Andre's demand for X is Q1=100−2P, where P is the price of X. Blaise's demand for X is QB=80−P. Suppose the total cost of producing X is TC=10Q+4, where Q is units of X produced. These two demand curves are depicted below and labelled A and B respectively.

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