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Suppose there are 6 firms competing in a perfectly competitive market characterized by demand Q = 600 (0.5)P. 3 of the firms (called type 1

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Suppose there are 6 firms competing in a perfectly competitive market characterized by demand Q = 600 (0.5)P. 3 of the firms (called type 1 firms) have a cost function: C (61,-) = q? + 2qg, while the other 3 firms (called type 2 firms) have a cost function: C(qi) = 2:11.2 + 10qg + 4. a) Obtain the equilibrium price and quantity b) Compute Consumer Surplus c) Compute total firms' profits d) Compute the HHI

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