A drug company has a monopoly on a new patented medicine
A drug company has a monopoly on a new patented medicine. The product can be made in either of two plants. The costs of production for the two plants are MC1 = 20 + 2Q1, and MC2 = 10 + 5Q2. ... The area under the MV curve is AM. Compute average height of S = AE. The area under AE is AA. Deadweight loss becomes AM - AA = 128.28 - 122.05 = 6.23. ................
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