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A monopolistfirm faces the following cost curve: C(y) = Q2 + 12, where Q is the output produced. The demandforits product is given by P = 24 - Q.
a) Derive the MRforthis firm.
b) Find the equilibrium price and quantity.
c) Find the profit level.
d) Calculate the Consumer Surplus, the Producer Surplus and the Deadweight Loss associated with monopoly pricing.
e) How does charging the monopolist a specific tax of $8 per unit affect the monopoly optimum and the welfare of consumers, the monopoly and society (where society's welfare, or surplus, includes the tax revenue)?What is the incidence of the tax on consumers?
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Economics thesis undergrad 4th year paper to write. it should be about 22 pages in length, literature review, economic analysis and then data or cost benefit analysis.
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