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(a) Let demand for car batteries be such that Q = 10 2P. Assume constant marginal costs of 3. Compute the equilibrium price, quantity, consumer
(a) Let demand for car batteries be such that Q = 10 2P. Assume constant marginal costs of 3. Compute the equilibrium price, quantity, consumer surplus, producer surplus for
i. A perfectly competitive firm
ii. A monopoly
iii. Two firms engaged in Cournot Competition.
iv. Assume one of the two firms has a marginal cost of 2 but the other is as before. What is the oligopoly outcome in this case?
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