Economics homework help?
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01-16-2013, 04:22 PM
Post: #1
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Economics homework help?
1) Suppose the demand curve for widgets is P = 30 – 3Q and the supply curve is P = 10 + 2Q.
a.) Find the equilibrium price and quantity in the free market. b.) Calculate aggregate social welfare (consumer surplus + producer surplus) in the free market. c.) Find the equilibrium price and quantity in a monopolized market. d.) Calculate aggregate social welfare (CS+PS) in the monopolized market. Any help would be awesome thanks. Ads |
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01-16-2013, 04:30 PM
Post: #2
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im a junior so idk
Ads |
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01-16-2013, 04:30 PM
Post: #3
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a. 30-3Q=10+2Q
5Q=20 Q=4, P=30-12=18 b. consumer surplus= 1/2(30-18)x4=24 producer surplus= 1/2(18-10) x 4=16 welfare=24+16=40 c.MC=MR 30-6Q=10+2Q 8Q=20,Q=2.5,P=30-7.5=22.5 d. cs=1/2(30-22.5)x2.5=9.375 ps=1/2(22.5-10)x2.5=15.625 welfare= 25 |
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