Question: a) Suppose a monopolist has a total cost function TC = 300 + 10Q + 2Q2, and the demand curve is P = 130-2Q. If

  1. a) Suppose a monopolist has a total cost function TC = 300 + 10Q + 2Q2, and the demand curve is P = 130-2Q. If the firm is a single price monopolist (it can only charge one price), calculate the maximum profit that the firm makes. (5 points)
  2. b) calculate the deadweight loss caused by the single price monopoly. (5 points)
  3. c) If the firm is a perfect price discriminator, calculate the maximum profit that the firm would make. (5 points)

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