What is optimal output level that maximizes profit

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A monopolist has demand function of P= 100-Q and cost functions of AVC= Q+4; FC=200

a. What is optimal output level that maximizes profit? What is that maximum profit?

b. What is consumer surplus (CS) and deadweight loss (DL) created by this firm?

c. Assume this firm applies perfect price discrimination, what is quantity and variable profit of the firm?

d. Identify relationship between variable profit (PS) that the firm gets before and after applying perfect price discrimination and consumer surplus and deadweight loss?

Reference no: EM132511794

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