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MC of monopolist is $10, d curve is Q=100-P, MR= 100-2Q what is the deadweight loss? what is the welfare loss?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter10: Monopoly

Section10.3: Perfect Competition And Monopoly

Problem 4ST

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Question

MC of monopolist is $10,

d curve is Q=100-P,

MR= 100-2Q

what is the deadweight loss?

what is the welfare loss?

Defintion Defintion Curve that represents the graphical relationship between the total supply of goods and services and the price level in the economy. When the price level increases, producers tend to supply more of a product in the market to earn a higher revenue or vice versa.

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Step 1: Defining Monopoly.

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Step 2: Determining the Deadweight loss.

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Step 3: Determining the welfare loss.

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