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needed answer for this macroeconomics question Question 5 1. Consider the Romer model. In this model concisely discuss why the market may not provide the

needed answer for this macroeconomics question

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Question 5 1. Consider the Romer model. In this model concisely discuss why the market may not provide the appropriate amount of research (that is the one that would maximise the growth rate). 2. One of the reasons you should have discussed above is consumer surplus. Consider the following figure. Find the ratio of the profit captured by the monopolist to the total potential consumer surplus available if the good were priced at marginal cost. Assume that the marginal cost is constant at c and the demand curve is linear: Q = a bP, where a, b. c are positive constants with a be > 0. Price Consumer surplus

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