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Suppose a single firm produces all of the output in a contestable market. The market inverse demand function is P = 200 -5 Q ,

Suppose a single firm produces all of the output in a contestable market. The market inverse demand function isP= 200 -5Q, and the firm's cost function isC(Q) = 20Q. Determine the firm's equilibrium price and corresponding profits.

a) what is the price ?

b) what is the profits ?

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