Assume that market demand for sugar is as follows. P = 140Q All firms have homogeneous cost structure: TC = 20Q.

(a) Under perfect competition, what would be equilibrium price, quantity, firms profit and consumer surplus?

(b) Lets say there is only one monopoly firm. What would be equilibrium price, quantity, firms profit and consumer surplus?

(c) Assume a Cournot game where there are three identical firms that produce a homogeneous product. Q = q1 +q2 +q3. What would be the equilibrium price and quantity?