Computing deadweight loss of monopoly

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Dana's Doorsteps (DD) is a monopolist in the doorstep industry. Its cost is C = 10Q and demand is P = 30- Q.

a. What price should DD set to maximize profits?

b. What would output be if DD acted like a perfect competitor and set P = MC?

c. What is the deadweight loss of the monopoly?

Reference no: EM1312465

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