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Suppose marginal cost are constant

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Reference no: EM131284175

Consider a market with the following demand curve: P = 400-2Q

Two firms are competing A & B: With MCa = Mcb = 112.

Suppose marginal cost are constant and identical for both firms.

We assume: P > AVC.

Find DWL Under Monopoly with firm A as the Monopolist:

Find the DWL under Cournot Duopoly:

Find DWL under Stackelberg Duopoly:

Reference no: EM131284175

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