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(a) A monopolist with a total cost curve C(Q) =5Q faces an inverse demand curve given by P=100-1/2Q. Calculate the monopolist's profit-maximizing price and quantity.
(a) A monopolist with a total cost curve C(Q) =5Q faces an inverse demand curve given by P=100-1/2Q. Calculate the monopolist's profit-maximizing price and quantity. Compare this to the equilibrium price and quantity that maximizes total surplus
(b) calculate the consumer surplus, the producer surplus, and the dead-weight loss.
(c) sketch on a graph the demand, marginal revenue, and marginal cost curves, identifying the profit-maximizing price and quantity, the surplus-maximizing price and quantity, and the dead-weight loss.
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