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A monopolist faces a demand curve given by D(p)=3-3p. Its cost function is C(q)=6q.
a. Determine the marginal revenue of the monopolist.
b. What is the profit-maximizing level of output produced by the monopolist?
c. Calculate the profit-maximizing price and the monopolists's profit and consumer welfare.
d. What would be the output level and price under perfect competition?
e. Calculate the consumer surplus and profit under perfect competition.
f. Determine deadweight loss of monopoly.
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