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Compute dead-weight loss and lost consumer surplus

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A Monopolist producing and supplying cooking gas to Mombasa city faces the demand function.Q = 8800 - 20P. Its cost function is given by TC = 20Q + 0.05Q2.

i. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit.

ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm.

iii. Illustrate and compute dead-weight loss and lost consumer surplus associated with her Monopoly operations.

Reference no: EM133115791

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