Question: Please, I need some help answering these questions. I would like to understand the main idea with a clear and well-described response. Thanks and stay
Please, I need some help answering these questions. I would like to understand the main idea with a clear and well-described response. Thanks and stay well.
- You are given the following demand and marginal cost:
P = 30 - 0.6Q
MC = 6
a.Find the monopoly equilibrium price and quantity.
b.Find the perfectly competitive equilibrium price and quantity.
c.Find the perfectly competitive consumer surplus, the monopoly consumer surplus and profit and the deadweight loss as the firm moves from perfect competition to monopoly.Confirm that the consumer surplus under perfect competition is split up into consumer surplus, profit and deadweight loss as a result of this move.
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