# Deadweight loss of monopoly for plastic hangers

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).

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

#### Solution Preview

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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