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Question 6 [15 marks] Suppose two firms (Firm 1 and Firm 2) are producing a product. Let the inverse demand function be: P = 50

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Question 6 [15 marks] Suppose two firms (Firm 1 and Firm 2) are producing a product. Let the inverse demand function be: P = 50 - 2Q, where Q = Q1 + Q2. Each of the two firms has the cost function TC = 4Q. Based on the information given, calculate the equilibrium P, Q, Q1, Q2 profit, and profit2 under: (a) monopoly (collusion) [5 marks] (b) Cournot [5 marks] (c) Stackelberg [5 marks]

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