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Business, 31.05.2020 05:01 ciarrap552

Firm 1 produces output X with a cost function C_1(X)=\frac{X^2}{200}. Firm 2 produces output Y with a cost function C_2(X, Y)=\frac{Y^2}{100}-2X. Both firms face competitive markets. The competitive price of X is 6 and the competitive price of Y is \$ 5. There is no entry or exit into this market. What is the socially optimal production of X?

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Firm 1 produces output X with a cost function C_1(X)=\frac{X^2}{200}. Firm 2 produces output Y with...
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