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Assume a market with demand Q = 16p^(--2) that is supplied by a monopoly with costs C(Q) = 6 + Q2/8.
1. Calculate the equilibrium price, output and monopoly profits.
2. What would be the equilibrium if the market was supplied competitively by firms, and each individual firm had the same costs?
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An owner can lease her building for $100,000 per year for the next three years. The explicit cost of maintaining the building is $35,000, and the implicit cost is $50,000. All reve
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