4. Assume a demand of Q=800-2P Assume this market is served by a monopoly. MC=AC = $20. a. Calculate the consumer surplus. b. Calculate the producer surplus. c. Calculate the deadweight loss.

Principles of Economics 2e
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ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 16RQ: How does the demand curve perceived by a monopolist compare with the market demand curve?
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4. Assume a demand of Q = 800 - 2P
Assume this market is served by a monopoly.
MC=AC = $20.
a. Calculate the consumer surplus.
b. Calculate the producer surplus.
c. Calculate the deadweight loss.
Transcribed Image Text:4. Assume a demand of Q = 800 - 2P Assume this market is served by a monopoly. MC=AC = $20. a. Calculate the consumer surplus. b. Calculate the producer surplus. c. Calculate the deadweight loss.
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