8. Monopolies and innovation. You saw in lecture that monopolies...

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8. Monopolies and innovation. You saw in lecture that monopolies can benefit by inventing new products that qualify for patent protection. The justification for the patents is that innovation helps consumers so let's see an example of how that can happen. Many companies make devices to help monitor blood sugar which is important for managing diabetes. The technology to do this is old so the devices are sold in a competitive market at marginal cost, $40. The demand for the device is described by Q): 100 —2P so you can graph the demand and find the current consumer surplus in this marketplace. What is the consumer surplus? at

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