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Firm A is the sole producer of a sport drink. A's marginal cost equals average cost M C = A0 = 30, and it faces market demand given by inverse demand function P = 120 - 0.562.

(1) Suppose A produces quantity q = 140 units at price p = 50. Is there any dead weight loss at current price and quantity? If yes, how much is the DWL?

(2) What is the monopoly price? What is the monopoly DWL?

Business Economics, Economics

  • Category:- Business Economics
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