Question: Given the demand function P = 70 Q and the total cost function C = Q2 + 6Q + 9, find: Assuming that the monopolist

Given the demand function P = 70 Q and the total cost function C = Q2 + 6Q + 9, find:

  1. Assuming that the monopolist only produces with one plant, find the output that could maximize a monopolists total profit and the corresponding levels of price and total profit.

  1. Assume that the monopolist can now operate any number of separate plants, each having the above cost function. What will be his maximum profit behavior (optimum output, price, profits, and number of plants operated)?

  1. What is the economic loss associated with the monopolistic behavior described in part (a) and part (b) above? Explain what is causing the results that you find?

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