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The market demand curve for a product is given below: QD = 250 - 0.5 P (i) Assume that the market is supplied by a
The market demand curve for a product is given below:
QD = 250 - 0.5 P |
(i) Assume that the market is supplied by a monopolist with a constant unit cost equal to $100. Calculate the equilibrium price and quantity.
(ii) Now assume that the market is supplied by perfectly competitive firms and that the market supply curve is perfectly elastic at a price equal to $100. Calculate the equilibrium price and quantity.
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