2. Suppose that the market demand for mountain spring water is given as  follows:  P = 1,200 - Q Mountain spring water can be produced at no cost.  a. What is the profit maximizing level of output and price of a monopolist?  b. What level of output would be produced by each firm in a Cournot  duopoly in the long run? What will the price be?  c. What will be the level of output and price in the long run if this industry  were perfectly competitive?

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