Question: Let the market demand for widgets be given by P = 1 0 0 Q / 1 0 and let the average and marginal cost

Let the market demand for widgets be given by P =100 Q/10 and let the average and marginal cost of production be constant at AC = MC = $20.a.Find the equilibrium price, quantity, and amount of consumer surplus if the market for widgets were perfectly competitive.b.Find the equilibrium price, quantity, profit, amount of consumer surplus, and amount of deadweight loss if the market for widgets were a pure monopoly.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!