Answers
in perfect competition P= MC
TC= 20q
MC= 20
P= 20
Q= 10000 - 250(20)= 5000
MR= MC
Q= 10000 - 250p
250P = 10000 - Q
P= 40 - 0.004Q
TR= PQ = 40Q - 0.004Q^2
MR= 40 - 0.008Q
40 - 0.008Q = 20
Q= 2500
P= 40 - 0.004(2500)= 30
Deadweight loss = 0.5(30-20)(5000-2500) = 12500
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