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You are a monopolist with the following cost and demand conditions: P = 100 - 2Q and C(Q) = 50 + Q2 (MC = 2Q)
a. Determine the profit-maximizing output and price.b. Calculate profits and deadweight loss.c. If this was a monopolistically competitive firm, would your answer in parts a and b change? If yes, please specify how. If no, explain why.
d. if this was a monopolistically competitive firm, what would happen to the profits of this firm in the long run?
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