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faust18 [17]
3 years ago
11

A monopolist faces a demand curve given by: P = 220 – 3Q, where P is the price of the good and Q is the quantity demanded. The m

arginal cost of production is constant and is equal to $40. There are no fixed costs of production. What is the deadweight loss associated with this monopoly?
Business
1 answer:
Montano1993 [528]3 years ago
8 0

Answer:

$1350

Explanation:

To find dead weight loss we will take into consideration the price and output level of both monopoly and perfect competition.

Dead weight loss = {(P2 - P1) * (Q1-Q2)} / 2

Where, P2 and Q2 are price and quantity respectively of monopolist and P1 and Q1 are price and quantity respectively of perfect competiton.

Dead weight loss = {(130-40) * (60-30)}/2

= (90*30)/2

= $1350

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cognitive dissonance

Explanation:

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3 years ago
The difference between monopolistic competition and pure competition is that compared to pure competition, monopolistic competit
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The difference between monopolistic competition and pure competition is that compared to pure competition, monopolistic competition has fewer firms, product differentiation, some price control, and relatively easy but not barrier-free entry.

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The best examples of purely competitive markets are agricultural commodities such as corn, wheat and soybeans. Monopolistic competition, like pure competition, has many suppliers and low barriers to entry.

In pure competition, all products are similar. Products may not all be the same and may not be exactly the same in packaging, color, and shape. Since the products are the same, buyers often have no product preferences and buy all products equally.

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7 0
2 years ago
A company producing cosmetics may have hundreds of suppliers, some of which may be selling the same or similar raw and packaging
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The creation of cosmetics is dominated by a small number of early 20th-century multinational corporations, but the distribution and sale of cosmetics is dominated by a wide range of businesses.

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1 year ago
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Answer:

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For a company to succeed and position itself in the market, it is necessary that leadership is based on ethical values that help in creating an organizational culture favorable to the development of each employee, and other essential skills, such as knowing how to communicate, offer assistance, provide feedback, understand each worker profile, in order to guide the work towards the achievement of objectives and goals.

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