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I have a problem where the demand is Q d = 30 - P/5 and MC=5Q. I am lost as I need to, on a
I have a problem where the demand is Qd = 30 - P/5 and MC=5Q.
I am lost as I need to, on a graph, show the socially optimal output level, Qsoc, and compute the quantity and price associated with this output.
I also need to show the areas of CS, PS, DWL that are part of the answer that relate to the monopoly.
How would I describe how I determined the socially optimal output level and how does it compare to CS, PS, and DWL?
I am very confused on this question.
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