Determine what is the deadweight loss of economy

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Market demand is P=20-Q and Market Supply is P = 2+Q

1) Calculate consumer and producer surplus assuming the market is competitive.

2) Assume that instead the market is monopolized and the monopolist's marginal cost function is 2+Q. Calculate the consumer and producer surplus. How much has the producer gained versus the competitive example in part 1? How much have the consumers lost? What is the deadweight loss?

Reference no: EM13239988

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