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2. A monopolist has the following cost and inverse demand functions: C = 1800 + ZOQ + Q2 P = 200 2Q a. Find the
2. A monopolist has the following cost and inverse demand functions: C = 1800 + ZOQ + Q2 P = 200 2Q a. Find the profit maximizing price for the monopolist. Determine also output, profits and consumer surplus. (3) b. Determine output, profit and consumer surplus in the case where the monopolist can perfectly price discriminate. (2) Compute the DWL from monopoly power in (a) and (b). (2) d. Would it be feasible to regulate this monopoly with the allocatively efficient price cap? (3) D
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