.

Consider a market demand given by flp Dpgl [l p>1 DlP)={ and suppose production is characterised by cost C (q) = 9'3 [3. [a] [30%] Suppose there is a large number of rms of mass 1 competing in the market. Deter mine the price and quantity in a competitive equilibrium. (b) [30%] Suppose now only two rms are competing in the market. Derive the Cournot equilibrium quantity and price. (c) [40%] Write down the integral that represents the dead-weight loss of the Cour-not duopoly of Part (b) [you do not need to solve it) and illustrate the deadweight loss in a. diagram