Given the following market demand and the cost function of a monopolist:

 

a. Find its maximum profit and the associated levels of quantity and price.

b. How much is the deadweight loss due to the monopolist behavior? Compute the levels of consumer and producer surplus and identify them in a graph along with the deadweight loss.

c. Suppose a price ceiling at P = 18 is set by the government. How much will the monopolist now produce? How much is its new profit? Calculate the new deadweight loss and explain why it is different now.

d. If the government were to set a price ceiling that wou
 ld maximize the total surplus (i.e. producer plus consumer), at what level would that be? How much will the rm produce at this ceiling and its corresponding profit? What is the deadweight loss at this point?

Q = 30 - P C(Q) = 10