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The demand curve that a monopoly faces is QD = 787 - 8P.

Rearranging this yields the inverse demand curve P = 787/8 - QD/8.

The marginal revenue curve is MR = P = 787/8 - 2QD/8.

There are no fixed costs for the monopoly and marginal cost is constant so marginal and average cost are equal.

AC = MC = 8

What is the dead weight loss due to the monopoly?

ROUND TO THE NEAREST CENT

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Retselisitsoe Pokothoane
Retselisitsoe PokothoaneLv10
28 Sep 2019

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Your monopoly company exhibits the following costs:

TC=60+6Q+Q2 & MC=6+2Q

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c)What are the monopolist profits

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