a)
To find: The calculation of profit maximizing price, quantity, and profit.
a)
Explanation of Solution
Therefore, Quantity = 24, Price = $29, and Profit = $576
b)
To find: The output level under
b)
Explanation of Solution
Thus, the output level produced by industry is 48.
c)
To find:
c)
Explanation of Solution
Sum of profit and consumer surplus = 576 + 288 = 864. Thus, Consumer surplus is more than the sum of profit and consumer surplus.
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