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Find the profit-maximizing price, output, profit, and deadweight loss for the following cases. Also solve for the price elasticity of demand at the profit-maximizing price
Find the profit-maximizing price, output, profit, and deadweight loss for the following cases. Also solve for the price elasticity of demand at the profit-maximizing price and quantity. Assume that MC is constant in each case. Include a hand-drawn graph that illustrates the profit-maximizing price and quantity, and identifies the firm's profit and the deadweight loss generated.
a. P = 110 - 2Q; MC = $10
b. P = 1400 - 10Q; MC = $400
c. P = 50 - 5 Q; MC=$0
d. P = 1100 - 0.5Q; MC = $100
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