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Suppose a monopoly (at one price) faces the following inverse demand, Q=400-0.5P, and has a cost structure, C(Q)=2Q^2. a) Calculate the equilibrium quantity and consumer
Suppose a monopoly (at one price) faces the following inverse demand, Q=400-0.5P, and has a cost structure, C(Q)=2Q^2. a) Calculate the equilibrium quantity and consumer surplus. b) If we were to change the problem and have a marginal cost curve that was not linear, but still with a downward slope. c) For example if the costs were C(Q)=Q3. Would we still have a deadweight loss? Justify your answer in words only.
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