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Question: Let demand for car batteries be such that Q = 100 - 1/3 P. Assume constant marginal costs of 30. ...

Show transcribed image text Let demand for car batteries be such that Q = 100 – 1/3 P. Assume constant marginal costs of 30. Compute the equilibrium price and quantity, consumer surplus, producer if relevant deadweight loss for: (a) A perfectly competitive firm (b) A monopoly (c) Two firms engaged in Cournot Competition. Compute consumer and producer surplus for the first of these three cases only. You should explain your work and define all relevant concepts.

Let demand for car batteries be such that Q = 100 – 1/3 P. Assume constant marginal costs of 30. Compute the equilibrium price and quantity, consumer surplus, producer if relevant deadweight loss for: (a) A perfectly competitive firm (b) A monopoly (c) Two firms engaged in Cournot Competition. Compute consumer and producer surplus for the first of these three cases only. You should explain your work and define all relevant concepts.