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Assume that a monopolist has a demand curve given by P = 1500 - 4Q, and T C = 100 + 5Q2 with MC = 10Q
1. Calculate the dead weight loss
2. Calculate the producer surplus
Business Economics, Economics
A monopolist faces a market demand curve given by P(y) = 100 y. Its cost function is c(y) = y 2 + 20. (a) Find its profit - maximizing output level y and the market price p(y ). (b) Calculate its total revenue, total cos ...
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