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Let demand for car batteries be such that Q = 100 − 2P. Assume constant marginal costs of 25. Compute the equilibrium price, quantity, consumer surplus, producer surplus and if relevant deadweight loss for:
i. A perfectly competitive firm
ii. A monopoly
iii. Two firms engaged in Cournot Competition.
iv. Two firms engaged in BertrandCompetition.
v. Two firms engaged in Stackleberg Competition (Here you should compute each firms quantity separately.)
You should explain your work and define all relevant concepts.
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