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1) Demand is defined by P=250-2Qd. Suppose that marginal cost is MC=Q where Q is the quantity produced by the monopoly. Find the monopoly quantity.
2) Find the monopoly price.
3) Suppose that there are NO fixed costs. Find profits corresponding to monopoly price and quantity.
4) Is profit equal to producer surplus here?
5) Find the consumer surplus corresponding to monopoly price and quantity.
q.point out one product that you believe is produced by a pure monopoly firm or a firm with a high degree of monopoly
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