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Suppose a monopolist faces the following demand curve: P = 180 - 4Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs.
A) What is the monopolist's profit maximizing level of output?
B) What price will the profit maximizing monopolist charge?
C) How much profit will the monopolist make if she maximizes her profit?
D) What is the value of consumer surplus?
E) What is the value of the deadweight loss created by this monopoly?
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