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A large firm that is a price leader in an industry characterized also by many small competing firms estimates that the market demand for its product to be as follows: Qm = 40,700 - 100P, where Qm is units per month.
It expects small firms in the industry to supply output according to the following function: Qs = 700 + 25P.
The quantity that the large firm will sell is 7750.
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