Question
Suppose the inverse demand for a product is P(Q) =30-2Q. This implies that the marginal revenue is MR(Q) =30- 4Q. The total cost of production
Suppose the inverse demand for a product is P(Q) =30-2Q. This implies that the marginal revenue is MR(Q) =30- 4Q. The total cost of production is C(Q) =20+Q^2 , which implies that the marginal cost is MC(Q) =2Q. The deadweight loss from monopoly power in this market is ________. A) 25 B) 15 C) 12.5 D) 7.5
Answer is (A)
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Macroeconomics Canada in the Global Environment
Authors: Michael Parkin, Robin Bade
8th edition
321778103, 978-0321808370, 321808371, 978-0321778109
