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Consider the market for scooters. Suppose it is a (single-price)monopolistic market. The market demand for scooters is given by the equation PD(Q) = 100-8Q. The firm faces costs given by the total cost function TC(Q)=3Q² + 34Q +10 and marginal cost function MC(Q)=6Q+34.
(a) Draw the firm's problem. Your graph should include (ATC, MC, MR, D).
(b) Calculate the profit maximizing quantity of this firm. Show it on your graph.
(c) What profit does the firm earn?
(d) Calculate the deadweight loss generated by this monopoly.
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