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Assume that a monopolist has a demand curve given by P = 1500 ? 4Q, and T C = 100 + 5Q2 with MC = 10Q.
(a) Graph the Demand, Marginal Revenue, Marginal Cost, and Average Total Cost curves
(b) What are the equilibrium price and quantity for this monopolist if it charges a single price to everyone?
(c) How much profit does the firm make?
(d) Show on the graph whether this market is operating efficiently.
(e) Calculate the dead weight loss.
(f) Calculate the consumer surplus.
(g) Calculate the producer surplus.
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