1. Use the following market demand and supply equations to answer questions a and b
Qd = 100 – P, and Qs = 10 + 2P and
ATC = 0.5Q
a) Calculate the competitive market’s profit-maximizing price, quantity, and profit
b)Now assume, the market above is a Monopolist’s market. Calculate the Monopolist’s profit-maximizing price, quantity, and profit.
c)Use one graph to show everything you calculated in part a and b of this question. When you look at the graph, how is the price, quantity, and profit of the monopolist different from the competitive market?