What is the equilibrium price and quantity of hangers

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Suppose that the inverse demand for clothes hangers is given by: P = 3 − Q/16,000. Suppose further that the marginal cost of producing hangers is constant at $1. a. What is the equilibrium price and quantity of hangers if the market is competitive? b. What is the equilibrium price and quantity of hangers if the market is monopolized? c. What is the deadweight or welfare loss of monopoly in this market? (You can just use a graph to explain.)

Reference no: EM13999222

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