Question

Suppose the doll company American Girl has a demand curve of P = 150 – 0.25Q....

Suppose the doll company American Girl has a demand curve of P = 150 – 0.25Q. The marginal cost is given by MC = 10 + 0.50Q. A) Calculate consumer surplus and producer surplus at the profit maximizing level of output. B) Calculate deadweight loss at the profit maximizing level of output. C) Calculate consumer surplus, producer surplus, and deadweight loss at the efficient level of output.

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