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    Deadweight loss of monopoly for plastic hangers

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    Please see the attached file.
    Consider a plastic hanger market. Suppose that the inverse demand for hangers is given by P=3-Q/16000
    MC=1
    Calculate the following (see attached).

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    https://brainmass.com/economics/general-equilibrium/deadweight-loss-monopoly-plastic-hangers-206839

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    See the attached file for complete solution. The text here may not be copied exactly as some of the symbols / tables may not print. Thanks

    a)
    P=3-Q/16000
    MC=1
    For competitive market, the equilibrium price and quantity is achieved when
    P=MC
    So we have 3-Q/16000=1 ...

    Solution Summary

    Illustrates how to calculate the equilibrium price and quantity for perfect competition and monopoly and deadweight loss of monopoly.

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