Question #108842

The demand is given by P = 20 â€“ 0.1Q, where P is the price and Q is the quantity demanded. The

monopolistâ€™s total cost is C = 120 + 2Q + 0.05Q

. Find

a. profit-maximizing price and quantity. (2)

b. deadweight loss in the monopoly profit-maximizing equilibrium. (2)

monopolistâ€™s total cost is C = 120 + 2Q + 0.05Q

. Find

a. profit-maximizing price and quantity. (2)

b. deadweight loss in the monopoly profit-maximizing equilibrium. (2)

Expert's answer

Solution:

a)

"2+0.1Q=20-0.1Q"

"Q=90"

b)

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