Deadweight loss created by this monopoly

Assignment Help Business Economics
Reference no: EM1313947

Q. Suppose a monopolist faces the subsequent demand curve: P = 180 - 4Q. Marginal cost of production is constant also equal to $20 also there are no fixed costs.

A) Illustrate what is the monopolist's profit maximizing level of output?

B) Illustrate what price will the profit maximizing monopolist charge?

C) Explain how much profit will the monopolist make if she maximizes her profit?

D) Illustrate what is the value of consumer surplus?

E) Illustrate what is the value of the deadweight loss created by this monopoly?

Reference no: EM1313947


Write a Review

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd