Two identical firms have access to a spring.Their marginal cost of bottling water from the spring is a constant 10¢ per bottle.The market demand for bottled spring water is P = 250 - 20Q,where P is the price (in cents per bottle)and Q is the quantity demanded (in hundreds of bottles).

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The Answer of Two identical firms have access to a spring.Their marginal cost of bottling water from the spring is a constant 10¢ per bottle.The market demand for bottled spring water is P = 250 - 20Q,where P is the price (in cents per bottle)and Q is the quantity demanded (in hundreds of bottles).

Two Identical Firms Have Access to a Spring