The market structure of home video gaming systems is best characterized by monopolistic competition.Quasar Entertainment is one of the producers in this market.The inverse demand for Quasar systems is:
P = 500 - 9.75Q
Quasar's cost function is: C(Q)= 0.25Q2 + 6.Determine Quasar's profit maximizing level of output and the price charged to customers.Is the market in a long-run equilibrium?
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