Question: Consider a Monopoly market with an inverse demand function: = 100 2 and a cost function: () = 2 and a marginal cost of =

Consider a Monopoly market with an inverse demand function: = 100 2 and a cost function: () = 2 and a marginal cost of = 2. a. Use the cost function to find AC b. Calculate the Marginal Revenue curve, and determine the profit-maximizing quantity the monopolist will produce and the price they will charge. c. Graph the Demand curve, Marginal Revenue curve, Average Cost curve, and Marginal Cost curve, indicating the Price and Quantity. d. Determine the Competitive price and quantity for the market below. e. Calculate the welfare loss associated with a Monopoly in this market. f. Calculate the profits the Monopoly firm earns in this market. g. How might the government regulate this market in an effort to improve welfare?

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