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Suppose a monopolist faces the following demand curve: P=420-4Q. Marginal cost of production is constant and equal to $36, and there are no fixed costs.
What is the monopolist's profit maximizing level of output?
What price will the profit maximizing monopolist produce?
How much profit will the monopolist make if she maximizes her profit?
What would be the value of consumer surplus in this monopoly market?
How much consumer surplus would there be if this market were perfewctly competitive?
What is the value of the deadweight loss when the market is a monopoly?"
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