What is the competitive market quantity and price

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If the equation for the demand curve were P = 10 - Q and MC is constant at 4, what would be the maximum possible rents that can be extracted from this market by a special interest group? Answer by completing the following steps. Hint: think of the monopoly result.

a) What is the competitive market quantity and price?

b) Find the marginal revenue and derive the rent-seeking cartel output and price.

c) What is the maximum amount of rents that can be gained by a special interest group?

Reference no: EM132162845

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