Find the quantity and price in equilibrium

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Reference no: EM131387956

Suppose that the demand for a good is given by Qd = 1000 − 20p and that each unit can be produced at a cost of 8.

a) Assuming this market is served by a monopolist, find the profit-maximizing quantity and price.

b) Assuming this market is perfectly competitive, find the quantity and price in equilibrium.

c) Illustrate your answers in b) and c) on a graph and show the deadweight loss of the monopoly.

Reference no: EM131387956

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