Question: A monopolys inverse demand function is p=1602Q, and it has no fixed cost. Initially, its marginal cost is 20. Now, the firm makes a process

A monopolys inverse demand function is p=1602Q, and it has no fixed cost. Initially, its marginal cost is 20. Now, the firm makes a process innovation that reduces its marginal cost to 16. Determine the price, quantity, consumer surplus, profit, total surplus, and deadweight loss before and after the innovation. What share of the increased total surplus goes to consumers?

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