9. A monopolist faces market demand Q=30-P where P is price and Q is output. It has a cost function. C(Q) = 50² 29 (a) Find the profit maximising price and quantity and the resulting profit to the monopoly. What is the socially optimal price? Calculate the deadweight loss (DWL) due to the monopolistic behavior of this firm. Calculate consumer surplus (CS) and producer surplus (PS). Show CS, PS, and DWL on a diagram.

9. A monopolist faces market demand Q=30-P where P is price and Q is output. It has a cost function. C(Q) = 50² 29 (a) Find the profit maximising price and quantity and the resulting profit to the monopoly. What is the socially optimal price? Calculate the deadweight loss (DWL) due to the monopolistic behavior of this firm. Calculate consumer surplus (CS) and producer surplus (PS). Show CS, PS, and DWL on a diagram.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.1P

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