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Q. "Based on marketplace research, a recording company obtains the following information about the demand and production costs of its new CD:
Price=1000-10QTotal Revenue=1000Q-10Q^2Marginal Revenue=1000-20QMarginal Cost=100+10Q(P is the price in cents)
a. Find out the price P and quantity Q that maximizes the company's profit
b. Find out P and Q that would maximize social welfare
c. Estimate the deadweight loss from monopoly
d. Assume, in addition to the costs above, the musician on the album has to be paid. The company is considering four options:
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