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Suppose the figure below shows the demand curve, marginal revenue curve and marginal cost curve for a monopolist. Consider the following: values for the points on the graph are: A = 100, B = 66, C = 33, E = 25, F = 68, G = 100, H = 134, I = 200.
a) Compute the profit maximizing level of output and revenue of the monopolist.
b) Compute the deadweight loss of the monopoly.
c) If TC = 400 + 0.25Q, find the profit/loss level for this monopolist.
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