Homework Answers
Q) option 1) $ 32
At monopoly eqm,MR = MC
50-4Q = 2+2Q
48= 6Q
Q*= 8
P*= 50-2*8= 34
At Q= 8, MC = 2+2*8= 18
.
In Perfect Competition, P = MC
50-2Q = 2+2Q
48= 4Q
Q'= 12
Deadweight loss = .5*(12-8)*(34-18)
= .5*4* 16
= 2*16
= 32
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EQ Price = 76
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