Value of deadweight loss in market welfare due to monopoly

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A monopolist is operating in the short-run, facing a market demand given by the following: Q = 1000 - 2P, where Q is market quantity and P is market price. Suppose the firm’s short-run total cost (TC) is: TC = 100?Q. Find the price and quantity that maximizes this firm’s short-run profit. What is the level of profit? Determine the values of consumer surplus, producer surplus, and market welfare under monopoly. If the firm operated as if perfectly competitive (i.e., where P = MC), what would be the values of consumer surplus, producer surplus, and market welfare? What is the value of the deadweight loss in market welfare due to monopoly?

Reference no: EM131161176

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