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What price should the monopolist charge

Assignment Help Business Economics
Reference no: EM132401179

A monopolist faces a demand curve given by

P = 40 - Q where P is the price of the good and Q is the quantity demanded.

The marginal cost of production is constant and is equal to $2.There are no fixed costs of production. 

  1. What price should the monopolist charge in order to maximize profit?
  2. How much profit will the monopolist make?
  3. Monopoly deadweight loss is equal to what?
  4. If the market were perfectly competitive, what quantity would be produced?

Reference no: EM132401179

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