The cost function for a single plant is: C(q) = 5q The market demand curve is P

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The cost function for a single plant is:

C(q) = 5q

The market demand curve is

P = 1005 – Q

1.Find the long-run competitive equilibrium price(1 pt) and output. Illustrate graphically. What is consumers’ surplus in competitive equilibrium?

2.Find the price and output if the industry is monopolized. Illustrate graphically. How much profit does the monopolist make? What is the welfare loss under monopoly?

Related Book For answer-question

Microeconomics An Intuitive Approach with Calculus

ISBN: 978-0538453257

1st edition

Authors: Thomas Nechyba

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Posted Date: Mar 22, 2023 07:22 AM

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The cost function for a single plant is: C(q) = 5q The market demand curve is P

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1 To find the longrun competitive equilibrium we need to set the marginal cost equal to the marginal revenue In a perfectly competitive market the mar... View the full answer

Microeconomics An Intuitive Approach with Calculus

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