What is the price the firm will set as a monopolist

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Given the following information, model the following monopoly for a strain of corn which has been patented in a totally, not-at-all-evil way by multinational agri-corp Notmonsanto. (HINT: Set up a table with Quantity in increments of 0.5)

 P = 17.5-1.5Q

 MR = 15.5-3Q

 MC = 8.5+1.5Q

a. What is the price the firm will set as a monopolist?

b. What quantity will they produce to maximize profit?

c. What price would the firm have faced under more competitive conditions?

d. What is the deadweight loss (use simplified calculations) seen as a result of this monopoly?

e. How much surplus (use simplified calculations) is transferred from consumers to producers as a result of this monopoly?

Reference no: EM13212879

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