Hawkins MicroBrewery has a monopoly on Oatmeal Stout in the local market. The demand is: QD=100...

Hawkins MicroBrewery has a monopoly on Oatmeal Stout in the local market. The demand is: Q_D=100 – 2P. Hawkins marginal cost of producing Oatmeal Stout is MC(Q) = 5 + 1/2Q
1. Calculate Hawkins profit maximizing output.
2. Calculate the social cost of Hawkins monopoly power.

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Expert Solution

Rahul Sunny answered 1 year ago

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