Answered: Paul's firm

Business

Economics

Paul's firm

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 9E

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Question

Paul's firm produces the same good as Sal's firm.

The total cost of producing q_p units in Paul's firm is C_p( q_p ) = 7.6 q_p + 2.2.

The total cost of producing q_s units in Sal's firm is C_s( q_s ) = 7.6 q_s + 2.2.

What is the efficiency loss if each person's firm produces half of a total of 595 units?

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