A monopoly faces an inverse demand curve, p(y) = 100 − 2y, and has constant marginal costs of 20. What is its profit-maximizing level of output and price?   What is the socially optimal price and output for this firm? (Perfectly competitive solution)   What is the deadweight loss due to the monopolistic behavior of this firm?       d.    Show your work algebraically and graphically

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A: TR=P*QTR(3)=5*3=15 and so onMR=change in TRMR(4)=19.2-15=4.2 and so onMC=change in TCMC(4)=6-5=1 and…

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Q: 1. Suppose demand curve is: Q = 500 -20P. a. What is the monopoly output if marginal cost is 5? b.…

A: Answer:

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A: Pa=100-qa        Qa=100-Pa                 TC= 30Q =30(Qa+Qb)Pb=85-.5qb        Qb=170-2Pa…

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Q: Suppose the following table contains data of a Monopoly.   Output       Price (Tk.)…

A: Q P TC TR=P*Q MR = ∆TR/∆Q MC=∆TC/∆Q 0 14 2 0     1 12 6 12 12 4 2 10 8 20 8 2 3 8 12 24 4 4…

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A:

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