2. Suppose an industry has potential firms with identical technologies with TC=200+2Q2. The demand curve...
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2. Suppose an industry has potential firms with identical technologies with TC=200+2Q2. The demand curve in this industry is D(p)=1841p (a) What is the AC minimizing quantity for a representative firm? (b) How many firms will operate in this market in the long run? (c) Now assume this market is a monopoly, and we will treat the fixed costs as sunk. What is the monopoly quantity and price? (d) What is the deadweight loss from monopoly pricing (assuming again 1 firm and sunk fixed costs)? What is the producer surplus
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