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The market demand curve for a product is given below: QD = 250 – 0.5P (1)...

The market demand curve for a product is given below: QD = 250 – 0.5P

(1) Assume that the market is supplied by a monopolist with a constant unit cost equal to $100. Calculate the equilibrium price and quantity.

(2) Now assume that the market is supplied by perfectly competitive firms and that the market supply curve is perfectly elastic at a price equal to $100. Calculate the equilibrium price and quantity.

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