Calculate the consumer surplus and producer surplus

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Reference no: EM13974666

Suppose that the market demand for wholesale coffee beans is given by P = 1200 - 2Q.

Suppose that there are 10 identical firms, each with MC = lOq, determine the market supply. Using the market supply solved for in (a), determine the equilibrium price and quantity if this market is perfectly competitive.

At the equilibrium price, calculate the Consumer Surplus (CS) and Producer Surplus (PS).

Reference no: EM13974666

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