How to calculate the monopoly price and output

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Reference no: EM13235051

A monopolist with marginal cost c faces inverse demand function P(Q) = A- BQ, where 0 < c = A and B > 0.

a. Calculate the competitive level of output.

b. Calculate the monopoly price and output. Illustrate the monopoly equilibrium graphically.

c. In the figure depict the regions of consumer surplus, producer surplus, and deadweight welfare loss due to monopoly. Calculate the values of consumer surplus, producer surplus, and deadweight welfare loss.

Reference no: EM13235051

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