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Question: consider the market for iphone apps suppose the inverse demand...

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Question 2 Consider the market for iphone apps. Suppose the inverse demand function for apps is p(Q) 20- Q and the cost function is 12 (1) Suppose first that the market is perfectly competitive. First, find the supply curve for firms. Second, find the equilibrium price and quantity. Third, find consumer surplus. (2) Now suppose that only Apple allows its own apps so it is a monopoly. Find the monopoly price and quantity. Then, find consumer surplus. Is consumer surplus more or less in the monopoly? (3) Redo parts (1) and (2) with the inverse demand function p(Q) 20
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