Question: d o n t u s e C h a t G p t There are two firms in a market with marginal cost functions

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There are two firms in a market with marginal cost functions given by MC1(q) = 1/3q MC2(q) = q . Market demand is given by D(p) = 20 2p .

(a) Obtain the competitive equilibrium output and price. Calculate consumer surplus and each firm's producer surplus.

(b) Derive the monopoly price when only firm 1 operates. Calculate consumer surplus and each firm's producer surplus.

(c) Derive the monopoly price when only firm 2 operates.

(d) Now assume that a monopolist owns two plants with marginal costs MC1(q), MC2(q) given above. Obtain the monopoly price and output.

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