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What is the monopoly price

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Reference no: EM131752393

Firm A is the sole producer of a sport drink. A's marginal cost equals average cost M C = A0 = 30, and it faces market demand given by inverse demand function P = 120 - 0.562.

(1) Suppose A produces quantity q = 140 units at price p = 50. Is there any dead weight loss at current price and quantity? If yes, how much is the DWL?

(2) What is the monopoly price? What is the monopoly DWL?

Reference no: EM131752393

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