QUESTION $1$:

Let$$s say the cost function and the demand function of a monopolistic firm are as

follows

C$=10+!$

P$=20-$Q

$($a$)$What is the price and output this monopolistic firm will produce?

$($b$)$What will be the price and quantity if the government mandated that this

monopolist behaves as a perfect competitor $($charges price of a perfect competitor

and sells quantity of a perfect competitor$)?$

$($c$)$ What is the PS$,$ CS$,$ and total welfare when in perfect competition? Compute the

numerical value of PS$,$ CS and TW$.$

$($d$)$What is the PS$,$ CS$,$ and Total welfare is monopoly? Compute numerical values.

$($e$)$Compute the deadweight loss when you move from perfect competition to

monopoly?

$($f$)$If the government sets a price of p$=10,$ what is the new price and quantity?