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Figure out the profit maximizing p and q

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Reference no: EM132292942

1) True/False: Monopoly reduces social welfare, so the government should always prohibit monopoly(explain)

2) Assume the demand for GMs new Hummer H2 is P = 100000 - 500Q, the marginal revenue is MR = 100000 - 1000Q, and the marginal cost is MC = 600Q.

a) Please figure out the profit maximizing P and Q.

b) What is the consumer surplus and what is the producer surplus?

Reference no: EM132292942

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