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Please solve this in the EASIEST way possible. A monopoly faces the following inverse demand curve: () = 100 2 The marginal cost is $10
Please solve this in the EASIEST way possible.
A monopoly faces the following inverse demand curve: () = 100 2 The marginal cost is $10 per unit.
A) What is the profit-maximizing level of output, ?
(answer should be 22.5)
B) What is the profit maximizing price?
(answer should be 55)
C) What is the socially optimal price
(answer should be Ps= 10)
D) What is the socially optimal level of output?
(answer should be 45)
E) What is the deadweight loss due to the monopoly's profit maximizing price?
(answer should be 506.25)
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