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Consider a monopoly, where the demand curve is given by P= 100- Q. marginal revenue is given by MR= 100-20, total cost is given by
Consider a monopoly, where the demand curve is given by P= 100- Q. marginal revenue is given by MR= 100-20, total cost is given by 7C= 10+ 100. and marginal cost is given by MC = 10 Suppose the government wants to implement a price ceiling in order to eliminate the most deadweight loss possible to society. What price could they set so that the most deadweight loss is eliminated but the monopoly does not make a negative profit? (No need to solve for the price exactly, just describe in words how the price would be set ) O The price corresponding to the point where price equals marginal cost. The price corresponding to the point where marginal revenue equals marginal cost. O The price corresponding to the point where price equals average total costs. O The price corresponding to the point where price equals total costs
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