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2. Consider a market where demand is given by Q = 60 – P and the marginal cost for every firm is $15. a. Assume the market is

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Solution 2 The market demand is quen by : a = 60-P The marginal cost is is. Under poyect competition at Equilibrium : Peme .:MR = OTR = 60-22 AL At Equilibrium : MR-MC =60-22=15422.5 P = 60-4 = 37.5 P Zol -P-37.316 1510 Mt Q=22-5 30 45 60 Consumer SuTotal sweptes Under monopoly is 759.375 & total surplus Under perfect competition is 1012.5, :. Total surplus Under monopoly

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