a monopoly has a total cost function of cq 8q


A monopoly has a total cost function of C(Q) = 8Q and faces a market demand Q = 100 ? 2p,

(a) calculate the deadweight loss;

(b) The firm now spent an amount equal to half of its current profits to obtain a monopoly. Evaluate the additional social loss (loss in profit).

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Macroeconomics: a monopoly has a total cost function of cq 8q
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