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Consider the following inverse demand function: Suppose that: MC=4. [Hint: MR 8(59-392) = 5-6q] (p=5-3q a. Compute the equilibrium in perfect competition (qc,ppc) b.

Consider the following inverse demand function: Suppose that: MC=4. [Hint: MR 8(59-392) = 5-6q] (p=5-3q a. Compute the equilibrium in perfect competition (qc,ppc) b. Compute the monopolist's equilibrium (q",pM) c. Compute the deadweight loss in the monopoly. Does monopoly cause inefficiency?

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