A monopoly faces an inverse demand curve, p(y) = 100−2y, and has constant marginal costs of 20. (a) What is its profit-maximizing level of output?
(b) What is its profit-maximizing price? $
(c) What is the socially optimal price for this firm?
(d) What is the socially optimal level of output for this firm?
(e) What is the deadweight loss due to the monopolistic behavior of this firm?
(f) Suppose this monopolist could operate as a perfectly discriminating monopolist and sell each unit of output at the highest price it would fetch. What is the deadweight loss? What is the total social surplus and how is it distributed?

fvrvdv    2   09.12.2020 02:16    2