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A monopolist faces a demand given by p = 30 – 3y. Its cost function is c (y) = 3y^2 + 6y
a) What is the optimal level of output for a monopolist?
b) What is a monopolist price?
c) What is the total profit (or loss)?
d) Show answers to (a), (b), and (c) on a graph that includes demand, MR, and MC
e) Calculate the dead weight loss because of inefficiency of exercising monopoly power?
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