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Draw the suitable graph for each situation and describe a real world situation in health care in which the market structure utilized in the question may exist.
Demand: P=6,000-0.1Q
Large Firm: TC=10,000+ 4q+q2 , MC=4+2q
Small firm: TC=300+10q+ q2 , MC=10+4q
1. Find monopsony P, Q, qi, CS, PS, Profit for the ith firm and DWL if there are 132 identical firms (use the small firm costs.)
2. Find the monopsony first mover competitive fringe buyer (there are 120 fringe buyers and 132 small sellers) solution using the following cost and demand condition.
Demand large buy buyer: P=5000-2Q
Demand small buyer: P=5000-50q
Small firm: TC=300+10q2 , MC=10+4q
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