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Compare the consumer surplus

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Reference no: EM131459687

Suppose that a monopolist faces market demand of Q=200-0.5P and a cost function of C=Q2+40Q+50.

a. On a well-labeled graph, show the marginal cost, and marginal revenue in this market.

b. What are the profit-maximizing price and quantity for the monopolist?

c. Suppose that instead, the monopolist can use perfect price discrimination. What is the lowest that the firm will charge and how many units will the firm sell?

d. Compare the consumer surplus, producer surplus and deadweight loss in parts b and c.

Reference no: EM131459687

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