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Unformatted text preview: Since TC = 20Q, MC = 20. Also, from the demand curve, MR = 100 8Q. Setting MC = MR and solving, we get Q M = 10 c) How much labor should the monopolist hire? L* = 2/5Q, so L* = 4 d) What price should the monopolist charge? If Q = 10, then substituting into the demand curve, P M = 60 e) What is the deadweight loss? DWL = 200...
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- Fall '08