Author Question: A monopolist has total cost TC = Q2 + 10Q + 100 and marginal cost MC = 2Q + 10 . It faces demand Q = ... (Read 45 times)

james · **on:** Jul 1, 2018

A monopolist has total cost TC = Q2 + 10Q + 100 and marginal cost MC = 2Q + 10 . It faces demand Q = 130- P (so its marginal revenue is MR = 130 - 2Q). Its profit-maximizing output
a. 30
b. 25
c. 20
d. 10

Question 2

Consider the same monopoly situation as in the previous question. The deadweight loss (compared to a single firm behaving as if it were perfectly competitive) is about
a. 667
b. 333
c. 1,000
d. 1,333