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The following graph represents a monopolist who runs a book publishing company named Pan Books. Suppose Pan Books' best-selling author. Ken Follett. has just written
The following graph represents a monopolist who runs a book publishing company named Pan Books. Suppose Pan Books' best-selling author. Ken Follett. has just written his latest novel. His books attract two types of readers: loyal fans who are willing to pay $40 for the book and those who are less enthusiastic: and are only willing to pay $20 F' {5) 5|]I . 4|} llm an 2|]I MC = ATC 'll]I 0 200,0 [ll] l 600.000 800.000 1 00,000 0 Go. REQUIRED: PART A (i) What is the monopolist's profit-maximising level of output and price? What is its economic prot'? Show your calculations. (ii) Calculate consumer surplus, producer surplus and deadweight loss at the monopolist's prot maximising level of output. Show your calculations
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