Question: Homework 5 (Chapter 18) 1. A monopoly firm's cost function is C(Q) = 10 + 20, where Q is the number of units of output

Homework 5 (Chapter 18) 1. A monopoly firm's cost function is C(Q) = 10 + 20, where Q is the number of units of output produced by the firm. The demand curve facing the firm is P(Q) = 100 - Q. The firm cannot engage in price discrimination. Questions: a) What is the socially optimal level of output? b) Now suppose for each unit of output that the firm produces, $20 in social damages arise (e.g., from pollution). What is the socially optimal level of output

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