On a remote island, there is only a virus-protected mask producer on the island. This producer has acted as if it is a monopolist since the island residents have no chance to import the mask from any other country during the pandemic of Covid-19. The demand for the masks by its residents is given by D(p)=100-2p , where D denotes the quantity demand for a virus-protected mask per day and p denotes the unit price of the mask. The producer faces the production cost as the following cost function, c(q)=2q

, where c is the unit cost of producing one mask and q is the unit quantity. Please answer all questions below.

What is the producer's optimal level of output and price?

According to the health concern during the pandemic, the government promotes mask-wearing to its residents by imposing the price ceiling on the price of masks. Government is in the hope that lowering the price will generate more quantity of masks to the market so that its resident can reach more masks and lower prices. What is the most efficient imposed price (maximum limited price)? What is the related quantity? Hint: the Deadweight Loss will be eliminated after imposing the price ceiling. , where c is unit cost of producing one mask and q is unit quantity.

Please answer all questions below. What is the producer's optimal level of output and price? According to the health concern during the pandemic, government promotes mask wearing to its residents by imposing the price ceiling on the price of mask. Government is on the hope that lowering the price will generate more quantity of mask to the market so that its resident can reach more mask and lower price. What is the most efficient imposed price (maximum limited price)? What is the related quantity? Hint: the Deadweight Loss will be eliminated after imposing the price ceiling.