Find equilibrium price and quantity in competitive market

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Reference no: EM13242444

Suppose the demand curve for Christmas trees in South Orange is given by:

P=520-4.75Q

And the market supply curve is given by:

P=20+0.25Q

Find the equilibrium price and quantity in a competitive market

Calculate the aggregate social welfare in the competitive market

Suppose Christmas tree suppliers get together to form a price-setting cartel (monopoly). What will price and quantity in this market be?

Suppose the department of Justice, Antitrust division takes Muncie Christmas tree cartel to court, arguing that the cartel is creating deadweight loss. It is beyond a doubt true that the cartel is acting monopolistically. Despite this, give two or three separate arguments that the cartel's lawyers might successfully make in their defense.

Reference no: EM13242444

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