1. Suppose a monopolist has constant marginal cost = $8 and there are no fixed costs.If the market demand curve is given by P = 80 - 3Q, what is the deadweight loss that will result in this market?Round your answer to two decimal places.
2. Suppose in a perfectly competitive market, there are n identical firms.Each firm has a Total Cost function: TC = 243 + 3q2, so the Marginal Cost for each firm is MC = 6q.If the Market Demand is given by P = 351 - 3Q, how many firms will there be in Long Run Equilibrium?
3. Suppose in the short run a perfectly competitive firm has FC = $675 and Variable Cost = 3q2where q is the firm's quantity of output.Therefore its marginal cost is MC = 6q.If the market price is P = $120, how much profit will this firm earn if it maximizes its profit?Round your answer to two decimal places.