Consider a monopolist with the following demand and cost function: Demand: P = 200 -0.10 Cost: C = 50,000+20Q+0.025Q² a. What is the profit maximizing quantity the firm should produce and what is demand elasticity at that quantity? b. What would be the socially efficient level of output and what per-unit subsidy would the government have to give consumers so that the socially efficient level of output is realized?

Consider a monopoly with the following marginal cost and demand curves: MC=2Q+200,p=2,600−2Q d. Do the welfare analysis of the equilibrium resulting from the monopolist’s profit-maximization. That is, calculate the consumer surplus, producer surplus, and deadweight loss (if it exists). e. Suppose there is a positive externality associated with the consumption of the good provided by this monopolist. Does the market structure (monopoly) exacerbate or alleviate the inefficiency (deadweight loss) resulting from such externality? Use math or a graph to support your answer. f. Suppose instead that there is a negative externality associated with the production of the good provided by this monopolist. Each unit produced generates a marginal external cost of x dollars. For which value of x does the under-provision inherent to the monopoly completely offset the inefficiency associated with such externality?

The market demand for a good is P = 90 - Q. The good can be produced at a constant cost of $10. How much deadweight loss is created if the market is served by a monopolist as opposed to a competitive market?Enter as a value.

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