What is the reason why we can have monopolies and account for characteristic features.

A monopolist has marginal costs of SEK 40. The demand function is further given by: p = 2000-4x

a) How much should the monopolist produce and what price should be put on the product for the monopolist to maximize profits?

b) Explain what socio-economic excess is and calculate socio-economically optimal production in this market.

c) Illustrate the solution in problem b) graphically and calculate consumer profits, producer profits and efficiency cabinets. Explain why efficiency cabinets occur