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Assume a single good, and utility to consumers, U(y) = 20 In (y +1) where y is quantity of good Also assume that the cost
Assume a single good, and utility to consumers, U(y) = 20 In (y +1) where y is quantity of good Also assume that the cost to produce y is
C(y) = y2 + 2y + 6
Compute the loss in Social Welfare (= sum of Consumer and Producer Surplus) in going from Marginal Cost to Monopoly Pricing (This loss may generically be called Dead Weight Loss, denoted by DWL)
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