What is the deadweight loss and why it arise

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A monopolist faces a market demand curve given by Demand: Q=70-P. The monopolist faces the following cost structure: C=0.25Q^2-5Q+200. What output level will the monopolist choose in order to maximize profits? What is the price at this output level? What are the monopolist's profits? What is the deadweight loss? Why does deadweight loss arise?

Reference no: EM13235563

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