Question: A monopolist faces the following demand function: P = 800 2Q. The total costs for this firm are TC = 10000 + 2Q 2 .

A monopolist faces the following demand function: P = 800 2Q. The total costs for this firm are TC = 10000 + 2Q2.

1. What is the quantity the monopolist should produce to maximize benefits? And the price?

2. Compute the amount of profit the monopolist will get.

3. Show what happens if the monopolist maximizes revenue instead of profit.

4. Represent the monopoly equilibrium in a graph.

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