Question 2: Consider a monopoly with marginal cost function given by: MC(Q)=3Q+20. It faces an inverse demand given by: P(Q)=120-Q. Calculate the following: 1. The equilibrium price and quantity under monopoly 2. The monopoly rents 3. The deadweight loss of the monopoly

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Monopoly Market

When a company and its products dominate a sector or an industry, it is termed a monopoly. When a firm and its products control a market, then it is called a monopoly.