Question #47995

Monopoly’s marginal cost is constant and equal to c. monopoly demand function given by D(p) = 180 – p. After maximizing profit, quantity of 80.

a) Illustrate graphically the monopoly’s profit maximization.

b) Calculate the monopoly’s marginal cost c.

c) Calculate the monopoly’s profit in case it has a fixed cost of 1400.

d) Calculate the social welfare (or deadweight) loss caused by the monopoly (not taking into account the monopoly’s fixed cost).

a) Illustrate graphically the monopoly’s profit maximization.

b) Calculate the monopoly’s marginal cost c.

c) Calculate the monopoly’s profit in case it has a fixed cost of 1400.

d) Calculate the social welfare (or deadweight) loss caused by the monopoly (not taking into account the monopoly’s fixed cost).

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