Only part (c) please, thank you! **Problem 3: Market Demand and Cost Analysis**Consider a market for a good with the following demand function:\[ Q = 120 - 2p \]where $ Q $ is the quantity demanded and $ p $ is the price. Suppose the cost of producing $ Q $ units of the good is:\[ C(Q) = \frac{1}{4}Q^2 \]**Tasks:**(a) Calculate the market price ($ p_c $) and total output ($ Q_c $) if the market is perfectly competitive.(b) Determine the monopolistic price ($ p_m $) and the quantity of the good produced ($ Q_m $) if the market is served by a monopolist (single firm).(c) Compute the inefficiency resulting from transitioning from a perfectly competitive to a monopolistic market, as indicated by the deadweight loss.

A monopoly is a market structure in which there is only one seller of a particular good or service.…

3. Consider a market for a good with the following demand function: Q = 120 - 2p where Qis quantity demanded and p is the price. Suppose the cost of producing Q units of the good be: C(Q) = Q² (a) If this market is perfectly competitive, what will be market price (pc) of the good and total output, (Qc). (b) If i J of (a) th

3. Consider a market for a good with the following demand function: Q = 120 - 2p where Qis quantity demanded and p is the price. Suppose the cost of producing Q units of the good be: C(Q) = Q² (a) If this market is perfectly competitive, what will be market price (pc) of the good and total output, (Qc). (b) If i J of (a) th

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Chapter1: Making Economics Decisions

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Question

Only part (c) please, thank you!

**Problem 3: Market Demand and Cost Analysis**

Consider a market for a good with the following demand function:

\[ Q = 120 - 2p \]

where $ Q $ is the quantity demanded and $ p $ is the price. Suppose the cost of producing $ Q $ units of the good is:

\[ C(Q) = \frac{1}{4}Q^2 \]

**Tasks:**

(a) Calculate the market price ($ p_c $) and total output ($ Q_c $) if the market is perfectly competitive.

(b) Determine the monopolistic price ($ p_m $) and the quantity of the good produced ($ Q_m $) if the market is served by a monopolist (single firm).

(c) Compute the inefficiency resulting from transitioning from a perfectly competitive to a monopolistic market, as indicated by the deadweight loss.

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