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1) Consider the following market demand and supply: Demand: P = 18 - 4Qd Supply: P = 7 + 3Qs If the market is at
1) Consider the following market demand and supply:
Demand: P = 18 - 4Qd
Supply: P = 7 + 3Qs
If the market is at equilibrium, what is the producer surplus?
(express answer in units of dollars, rounded to at least 2 decimals)
2) Consider an average cost structure of AC = 2/Q + Q and marginal cost structure of MC = 2Q. What is the economic profit of a profit-maximizing firm in a competitive market if the price is $60?
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