The demand function for some product is given by Q = 100-10p. Itcosts $1 to produce one unit of this good and fixed costs ofproduction are zero.
(a) Calculate equilibrium prices and industry output for twomarket structures: when this market is supplied by a large numberof perfectly competitive firms and by a monopolist.
b) Now suppose that there are only two firms in this industrywhich compete in quantities. State the profit-maximization problemof each firm and and their optimum strategies. Calculateequilibrium price and output per firm.
