What is the equilibrium price and quantity

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In the following, let the market demand curve be P = 70 - 2Q, and assume all sellers can produce at a constant marginal cost of c = 10, with zero fixed costs.

a) If the market is perfectly competitive, what is the equilibrium price and quantity?

b) If the market is controlled by a monopolist, what is the equilibrium price and quantity? How much profit does the monopolist earn?

c) Now suppose that Amy and Beau compete as Cournot duopolists. What is the Cournot equilibrium price? What is total market output, and how much profit does each seller earn?

Reference no: EM131253842

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