2. Monopoly, Practice QuestionFirm P is a monopolist for a new drug that makes people feel thinner. the total costfunction isC(Q) = 200 + 10Q + Q²The inverse demand function isp(Q) = 82 - Q(a) By how much do revenues increase if this firm sells one more (small) unit of output?By how much does its cost go up if it produces one more (small) unit of output?(b) What is the optimal price and quantity the monopolist should charge and sell?(c) What is the profit the monopolist makes? Should the firm shut down in the short orlong run?(d) If the company increases its price by a small fraction (let us say 1%), by whatproportion does demand go down? [Round to two decimal places.](e) What percentage of the price is due to costs and what is due to markup? [Round totwo decimal places.](f) What is the deadweight loss of the monopoly pricing compared to competitive prices?

According to the Bartleby guidelines solving only first three subpart please post remaining…

Monopoly, Practice Question rm P is a monopolist for a new drug that makes people feel thinner, the total cost nction is C(q) = 200 + 10Q + Q² e inverse demand function is p(Q) = 82-Q By how much do revenues increase if this firm sells one more (small) unit of output? y how much does its cost go up if it produces one more (small) unit of output? What is the optimal price and quantity the monopolist should charge and sell? What is the profit the monopolist makes? Should the firm shut down in the short or ng run?

Monopoly, Practice Question rm P is a monopolist for a new drug that makes people feel thinner, the total cost nction is C(q) = 200 + 10Q + Q² e inverse demand function is p(Q) = 82-Q By how much do revenues increase if this firm sells one more (small) unit of output? y how much does its cost go up if it produces one more (small) unit of output? What is the optimal price and quantity the monopolist should charge and sell? What is the profit the monopolist makes? Should the firm shut down in the short or ng run?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The figure below shows demand, marginal revenue, and short-run cost curves for a monopoly: a. How much should the firm produce? What price should it charge? b. What is the firm’s profit (loss)? Should this firm produce or shut down? Explain. c. If the firm shuts down in the short run, how much will it lose?
Im stuck with parts b and c bc I’m not sure if I found the correct values in part A. Could I have some help
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