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Suppose that the market for bike locks is served by a monopolist with marginal cost given...

Suppose that the market for bike locks is served by a monopolist with marginal cost given by MC = 20. It is also the case that inverse demand for bike locks is given by P = 100 – 0.25Q.

  1. What are the equilibrium price and quantity?
  2. What is the monopoly profit?
  3. What is the deadweight loss associated with monopoly power?
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