1. Suppose the market demand for a product is given by P = Q^1/, where > 1 is the price elasticity of demand and is constant. A monopolist can provide the product at constant marginal cost c = 1.
2. (a) Compute the monopoly price and deadweight loss (DWL).
3. (b) Show that DWL decreases with and that DWL approaches 0 as goes to infinity. Explain your result intuitively.
4. (c) Plot the curve of DWL as a function of , or present a table showing numerically how DWL relates to .