Please help to solve this. Thank you! 5. Market PowerA monopolist has a cost function C(q) = 2q and faces a demand curve p = 10-q.a. Find the profit maximizing quantity and price.b. Find deadweight loss.6. Public GoodsSay we have a PPF 2² + y² = 2. z is a private good and y is a public good. A representativeconsumer i out of 100 people consumes z; = 100 and y;= y (because a public good is notexcludable) and has a utility function U(1,,y) =1₂y=100a. What is the competitive market outcome, roughly speaking?b. What is the socially optimal z and y?

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5. Market Power A monopolist has a cost function C(q) = 2q and faces a demand curve p = 10-q. a. Find the profit maximizing quantity and price. b. Find deadweight loss.

Principles of Economics, 7th Edition (MindTap Course List)

7th Edition

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section: Chapter Questions

Problem 4QCMC

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Question

Please help to solve this. Thank you!

5. Market Power
A monopolist has a cost function C(q) = 2q and faces a demand curve p = 10-q.
a. Find the profit maximizing quantity and price.
b. Find deadweight loss.
6. Public Goods
Say we have a PPF 2² + y² = 2. z is a private good and y is a public good. A representative
consumer i out of 100 people consumes z; = 100 and y;= y (because a public good is not
excludable) and has a utility function U(1,,y) =1₂y=100
a. What is the competitive market outcome, roughly speaking?
b. What is the socially optimal z and y?

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