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Hey IHell Hello this is the question I need help with 2. Suppose one Japanese firm and one American rm dominate the US market of

Hey IHell

Hello this is the question I need help with

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2. Suppose one Japanese firm and one American rm dominate the US market of Widgets. They share the same cost structure: If C = 250 + 40g. The only demand for widgets is in the US and isp = 100 Q. (a) (20 points) If these two rms compete in quantity at the same time, what is the Cournot equilibrium output, price, prot level by each rm? (b) (15 points) Suppose the American rm acquires the Japanese rm and therefore becomes a monopoly in this market. Note that the monopoly [ma carries the some cost structure and serves the same market demand. Calculate the monopoly's output, price, and Lerner Index. How much is the deadweight loss due to monopoly behavior

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