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The market demand and supply conditions are given as follows. The individual demand is d: p = 20 - 10q. There are 10 identical consumers. Also there are 20 identical firms, each firm's marginal cost is, MC(q) = 5 + 5q. (1). Calculate the equilibrium price and quantity (2). If a monopolist owns the 20 identical firms, what would be the price and quantity produced? (3). Which arrangement (1) or (2) is good for the consumers? Why?
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