SAU: MBA 626: Managerial Economics 3. Problem Set #7: Monopoly Demand: P = 120 - 2Q Total Cost: TC = 10 + Q2 Marginal Revenue: MR = 120 - 40 Marginal Cost: MC = 20 Quantity Price Total Marginal Total Cost Marginal Profit a. Find profit maximizing price and quantity. Revenue Revenue Cost 1 1.200 1,500 IN 1,100 1,800 1.000 2,200 900 2,800 800 3,500 700 4,200 600 5,600 500 7,400 b. What is the amount of profit when profit is being maximized? 1. Complete the table below. a. What is the profit-maximizing level of output? 2. c. What is the amount of deadweight loss (as compared to perfect competition)? Demand: P = 120 - Q Total Cost: TC = Q2 Marginal Revenue: MR = 120 - 2Q Marginal Cost: MC = 20 a. Find profit maximizing price and quantity. b. What is the amount of profit when profit is being maximized? c. What is the amount of deadweight loss (as compared to perfect competition)