Q3. Consider a monopoly firm that faces the following market demand curve: P = 2400 - Q where Q is quantity and P is price. Its marginal cost curve is P = 2Q.

a) Compute the monopoly's equilibrium outcome (Qm, Pm)

b) Compute deadweight welfare loss (DWL)

c) Compute the Lerner Index and the monoploy's elasticity of demand at the equilibrium outcome

d) Illustrate using a graph, the monopoly's equilibrium and DWL

Q3. Consider a monopoly rm that faces the following market demand curve: P = 2400 Q where Q is quantity and P is price. Its marginal cost curve is P = 2Q. a) Compute the monopoly's equilibrium outcome (953, Pm) b) Compute deadweight welfare loss (DWL) 0) Compute the Lerner Index and the W elasticity of demand at the equilibrium outcome d) Illustrate using a graph, the monopoly's equilibrium and DWL