Essay
The market demand curve for a product is given below:
(i)Assume that the market is supplied by a monopolist with a constant unit cost equal to $40. 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 $40. Calculate the equilibrium price and quantity.
Correct Answer:
Verified
Correct Answer:
Verified
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