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.(40) Consider a good with MC=40+2Q and market demand given by MB=751.5Q. a. Sketch the good's marginal benefits and marginal costs on the axes below.
.(40) Consider a good with MC=40+2Q and market demand given by MB=751.5Q. a. Sketch the good's marginal benefits and marginal costs on the axes below. Label important points. b. Calculate the efficient allocation of this good. Add it to your graph above, and enter its value in the blank below. Show your work c. Now assume that this good is allocated by a monopolist. Enter the equation for the monopolist's marginal revenue in the blank provided below, and MR to your graph in part a. d. Calculate the monopolist's allocation of this good and the price the monopolist will charge. Add these to your graph above, and enter their values in the blanks below. Show your work. .(40) Consider a good with MC=40+2Q and market demand given by MB=751.5Q. a. Sketch the good's marginal benefits and marginal costs on the axes below. Label important points. b. Calculate the efficient allocation of this good. Add it to your graph above, and enter its value in the blank below. Show your work c. Now assume that this good is allocated by a monopolist. Enter the equation for the monopolist's marginal revenue in the blank provided below, and MR to your graph in part a. d. Calculate the monopolist's allocation of this good and the price the monopolist will charge. Add these to your graph above, and enter their values in the blanks below. Show your work
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