Determine what is the rent seeking

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A monopolist has a cost function C = 3Q^2 and faces the inverse demand curve P = 1200 - Q

a.) What is the profit maximization price and output?

b.) Sketch the firm's price and output decision. Calculate the deadweight loss.

c.) What iss the firm's total profit?

d.) What is rent seeking? How much, potentially, might this monopolist spend on rent seeking activities? Assume that they will earn the same profit you calculated in part c forever, and that the interest rate is 5%.

Reference no: EM13207019

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