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Good Evening! Please see the attached WORD document for the questions I need help with. :-)


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1. C

this question is tricky because you cannot find the profit (because ATC curve is not given). We calculate deadweight loss (which is the triangle formed by the 3 dots), (6-2) X 100 X 1/2 = 200. The only choices with deadweight loss of 200 is C and D. ...