The demand function for some product is given by Q = 100-10p. It costs $1 to...

The demand function for some product is given by Q = 100-10p. It costs $1 to produce one unit of this good and fixed costs of production are zero.

(a) Calculate equilibrium prices and industry output for two market structures: when this market is supplied by a large number of perfectly competitive firms and by a monopolist.

b) Now suppose that there are only two firms in this industry which compete in quantities. State the profit-maximization problem of each firm and and their optimum strategies. Calculate equilibrium price and output per firm.

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Rahul Sunny answered 2 months ago

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