What are monopolist profit maximizing output and price

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Q. firm's estimate of demand for product is P = 20 - 3 (Q1 + Q2). How much should firm plan to produce in each plant? At what price should it plan to sell product? 4. Suppose that market demand curve for a new drug, Adipose-Off, designed to painlessly reduce body fat, is given equation P = 100 - 2Q, where P is price in dollars per dose. Suppose also that re is a single supplier of drug who faces a marginal cost, as well as average cost, of producing drug equal to a constant $20 per dose. (a) What are monopolist's profit maximizing output and price? What is resulting deadweight loss relative to competitive outcome? (b) Suppose government levies a specific tax of $5 per dose on monopolist. What would happen to monopolist's profit maximizing output and price? What would happen to consumer and producer surplus? What would be size of resulting deadweight loss relative to competitive outcome? (c) Suppose g

Reference no: EM1369265

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