You have been granted a monopoly in the avocado market. The market demand for avocados is Q = 2000 – 2P. Your cost %3D structure is such that your total costs are TC = 1000+ 400Q. (limit: whatever needed) What is your profit maximizing price and quantity? Explain this in words and show it graphically.

Problem 1. Market demand is P = 100-0.25Q, where Q is the total quantity demanded by consumers. Monopoly's costs are C = 10Q. (10 marks) a) Calculate prices and quantities if the monopoly uses block pricing with two prices. Calculate CS, DWL and firm's profit and demonstrate on a diagram. b) Find firm's output and profit if the firm engages in perfect price discrimination. Show on a diagram. I

Which of the following statements is true of a monopoly as compared to a perfectly competitive market with the same costs? * Consumer surplus is smaller. Profit is smaller. Deadweight loss is smaller. Total surplus is larger. O Quantity is larger.

Simple econ question, thank you!