Answered: 4. Assume a demand of Q=800-2P Assume…

4. Assume a demand of Q=800-2P Assume this market is served by a monopoly. MC=AC = $20. a. Calculate the consumer surplus. b. Calculate the producer surplus. c. Calculate the deadweight loss.

Principles of Microeconomics (MindTap Course List)

8th Edition

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 5QR

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4. Assume a demand of Q = 800 - 2P
Assume this market is served by a monopoly.
MC=AC = $20.
a. Calculate the consumer surplus.
b. Calculate the producer surplus.
c. Calculate the deadweight loss.

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