What is the profit maximizing level of output

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A monopoly can produce at constant marginal and average cost of 5. The firm faces a market demand curve given by Q = 53 - P. Hint: Graphing the problem may be useful for parts c. and d.

a. What is the profit maximizing level of output? What is the price?

b. Compute the profits.

c. What output level would be produced by the industry under perfect competition?

d. Calculate the consumer surplus under monopoly and under perfect competition.

Reference no: EM131244714

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