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1.Consider a market with demand given by P = 320 - Q. Firms have no fixed costs but do have a constant marginal cost of

1.Consider a market with demand given by P = 320 - Q. Firms have no fixed costs but do have a constant marginal cost of $40.

a.What would be the equilibrium market quantity and price if this market were perfectly competitive? Answers do not have to be integers.

b.Calculate the profit and consumer surplus in this market.

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