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1. solve for output, price, profit and Deadweight loss Consider a monopolist with cost function: C(Q) = 12 - 30 + =Q- , and marginal

1. solve for output, price, profit and Deadweight loss

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Consider a monopolist with cost function: C(Q) = 12 - 30 + =Q- , and marginal cost equals: MC (Q) = -3+ 0 . The market demand is: Q = 18 - 2P , which yields a marginal revenue of: MR = 9 - Q. Solve for the firm's profit-maximizing level of output, price, and profit. (enter results using decimals, not fractions). Solve for the deadweight loss that results from this firm being a monopolist. (hint: you'll need to find where the firm would produce if it were to behave as a competitive firm. You may want to sketch this.)

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