Find profit maximizing output and price level for this firm

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Suppose the market for agricultural machinery, including crop sprayers, in a region is monopolized by one company, Jack Rein Deere. The market demand for sprayers is given by Q = 1250 - 0.05P. The monopolist's supply curve for sprayers is given by Q = 0.1P.

a. Find the profit maximizing output and price level for this firm.

b. What would be the equilibrium price and output if this market was instead perfectly competitive?

c. Using a graph, calculate the deadweight loss from the monopolization of this market by Jack Rein Deere.

Reference no: EM13688749

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