Operating in a perfectly competitive market

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1) Consider a monopolist with demand Q = 120-2 p and marginal cost MC = 40. Determine profit, consumer surplus, and social welfare in the following three cases:

a) single-price monopolist;

b) perfect price discrimination.

c) Consider that the firm is operating in a perfectly competitive market. Find the profit, consumer surplus, and social welfare under this situation.

Show your work graphically.

Reference no: EM132542006

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