A monopoly has the following demand, marginal revenue, total cost and marginal cost curves: Demand: P = 1000 - 100 TC = 1000 + 502 = a. Find the price and quantity that maximizes monopoly's profits b. How much profits does the monopoly make at the profit-maximizing level of quantity? C. How much output would a perfectly competitive market produce? What price would it charge? d. Calculate the deadweight loss from monopoly; Calculate Consumer Surplus e Suppose monopoly perfectly price discriminates (practices 1" degree price discrimination). Find monopoly profit with 1" degree price discrimination, CS and DWL.
