The Industry Demand Curve for a Particular Market Is

question 83

Essay

The industry demand curve for a particular market is:
Q = 1800 - 200P.
The industry exhibits constant long-run average cost at all levels of output, regardless of the market structure. Long-run average cost is a constant $1.50 per unit of output. Calculate market output, price (if applicable), consumer surplus, and producer surplus (profit) for each of the scenarios below. Compare the economic efficiency of each possibility.
a. Perfect Competition
b. Pure Monopoly (Hint: MR = 9 - 0.01Q)
c. First Degree Price Discrimination

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Definitions:

Nike

A global brand specializing in athletic wear, known for its innovative products and marketing strategies.

Brand Name

The name given to a product or service by a company, which is designed to be easily identifiable and memorable by consumers.

Metaphorical

Pertaining to or characterized by metaphors, using one thing to represent another in order to convey meaning or make a comparison.

Fabricated

implies something that has been made or constructed, often with the intention to deceive or give a false impression.