Question: A monopolist has a cost function given by C(y)=y 2 and faces a demand curve given by P(y) = 120-y. a) If you wanted to

A monopolist has a cost function given by C(y)=y² and faces a demand curve given by P(y) = 120-y.

a) If you wanted to choose a price ceiling for this monopolist so as to maximise consumer plus producer surplus, what price ceiling should you choose? How much output will the monopolist produce at this price ceiling? Explain your calculations.

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