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The inverse demand curve for a firm with market power is P = 60 - Q , and its marginal cost is given by MC
The inverse demand curve for a firm with market power is P = 60 - Q, and its marginal cost is given by MC = 2Q. If the firm decides to practice first-degree price discrimination, the deadweight loss will:
a. decrease from $37.50 to $0.
b. decrease from $45 to $15.
c. increase from $0 to $65.
d. increase from $30 to $45.
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