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Suppose a monopolist faces the following demand curve: P= 200 - 3Q. The long-run marginal cost of production is constant and equal to $50, and
Suppose a monopolist faces the following demand curve: P= 200 - 3Q. The long-run marginal cost of production is constant and equal to $50, and there are no xed costs. A) What is the monopolist's prot-maximizing level of output? The monopolist's prot-maximizing level of output is B) What price will the prot-maximizing monopolist charge? The monopolist will charge C) How much prot will the monopolist make if she maximizes her prot? The monopolist's maximum prot is $ D) What would be the value of consumer surplus if the market were perfectly competitive? Consumer surplus would be 35 in a perfectly competitive market. E) What is the value of the deadweight loss when the market is a monopoly? The deadweight loss associated with this monopoly is F) What is the value of the Lerner Index for this monopoly? Round your answer to three decimal places. The Lerner Index for this monopoly is
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