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Suppose that a Monopolist's market demand is given by P a - Q, a>2, and that the a) Calculate the profit maximising monopoly price and quantity. b) Calculate the price and quantity that arise under perfect competition. [8 marks ] c) Calculate and compare Consumer and Producer Surplus both under monopoly [6 marks ] and perfect competition: what is the Deadweight loss due to Monopoly? Provide a graphical description of the two cases.
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