Consider the tabled revenue and cost data to the right. Answer the questions that follow. Inverse Demand: P = 130 - 0.08333333 Q
		Quantity	Price=AR	MR	MC	ATC	profit
A. What is the profit maximizing level of output?		0	130.0	130.0	147.1	146.6	0
		500	125.8	121.7	128.9	137.9	-6033.33
B. What is the total profit at the profit maximizing level?		1000	121.7	113.3	112.1	129.1	-7433.33
		1500	117.5	105.0	97	120.9	-5100
C. What is the "mark-up" on marginal cost, the P/MC ratio at Qpmax?		2000	113.3	96.7	83.3	113.2	266.6667
		2500	109.2	88.3	71.2	106	7916.667
D. What is the implied own price elasticity of demand? {Ed = MUp/(1-MUp)}		3000	105.0	80.0	60.7	99.3	17100
		3500	100.8	71.7	51.7	93.1	27066.67
E. At what level of output does price equal marginal cost?		4000	96.7	63.3	44.3	87.5	36666.67
		4500	92.5	55.0	38.4	82.3	45900
F. Using the "triangle area method," estimate Dead Weight Loss.		5000	88.3	46.7	34	77.7	53166.67
		5500	84.2	38.3	31.2	73.6	58116.67
G. What is the value of the Lerner index: L=(P - MC)/P		6000	80.0	30.0	30	70	60000
		6500	75.8	21.7	30.3	66.9	58066.67
H. What is -1/L?		7000	71.7	13.3	32.1	64.4	50866.67
What is the ratio DWL at "fair" regulated price to DWL with monopoly pricing?		7500	67.5	5.0	35.5	62.3	39000
		8000	63.3	-3.3	40.5	60.8	20266.67
		8400	60	-10	45.7	60	0
		8500	59.2	-11.7	47	59.8	-5383.33
		9000	55.0	-20.0	55	59.3	-38700
		9500	50.8	-28.3	64.6	59.3	-80433.3
		10000	46.7	-36.7	75.7	59.8	-131333