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The inverse demand and supply functions for a product are given as:
where P is price, Q is quantity and the subscripts d and show demand and supply, respectively. (a) Determine the equilibrium price and quantity.
(b) Using the definite integral, calculate the consumer and producer surpluses at the equilibrium position.
(c) Give your answers to part (a) and (b) on an appropriate diagram.
i) Briefly distinguish between the Cournot duopoly model and that of Stackelberg. ii) Suppose the inverse market demand curve for a telecommunications equipment is P = 10
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