Suppose the market demand curve is given by: Q = 100 - 2P and assume that MC = AC = 10.

Answer parts a and b for each of the following four market assumptions:

(i) perfect competition(ii) monopoly (non-price discriminating)

(iii) price discriminating monopoly(iv) two-part tariff

a. Equilibrium price and quantity.

b. Consumer surplus, profits, and dead-weight loss. Discuss the effects of these different market structures on redistribution and economic efficiency.

c. Can you think of any beneficial aspects of a monopoly?