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Consider the case of a market with demand curve Q = 75-P. Assume the production cost is $5/unit. a) Find the price and quantity produced

Consider the case of a market with demand curve Q = 75-P. Assume the production cost is $5/unit. a) Find the price and quantity produced under perfect competition and Monopoly. (Hint: When plotting a demand curve, remember that MR has the same intercept as demand, but with twice the slope). b) Find the deadweight loss associated with Monopoly. c) Suppose the government imposes a tax of $5/unit on production. Will the incidence of the tax on consumers be higher for perfect competition or monopoly? Explain the logic behind your finding

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