Deadweight loss created by this monopoly

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Reference no: EM1313947

Q. Suppose a monopolist faces the subsequent demand curve: P = 180 - 4Q. Marginal cost of production is constant also equal to $20 also there are no fixed costs.

A) Illustrate what is the monopolist's profit maximizing level of output?

B) Illustrate what price will the profit maximizing monopolist charge?

C) Explain how much profit will the monopolist make if she maximizes her profit?

D) Illustrate what is the value of consumer surplus?

E) Illustrate what is the value of the deadweight loss created by this monopoly?

Reference no: EM1313947

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