Reference the following information about the market demand function for questions 1 to 15. These questions are on different types of market structures - monopoly, perfect competition, Cournot oligopoly market, and the Stackelberg oligopoly market.

The market demand function is given the following equation:P = 4000 - Qwhere Q is the industry's output level.

Question 1

Suppose, initially, this market is served by a single firm.

Let the total cost function of this firm be given the function C(Q) = 200Q. The firm's marginal cost of production (MC) is equal to the firm's average cost (AC):MC = AC = 200.

What is theoutput levelproduced by the profit-maximizing firm in this industry?

3800

2850

1900

950

Question 2

What will be themarket pricecharged by the monopolist at the profit-maximizing level of output?

950

1900

2100

2850

Question 3

What will be theprofitearned by the monopolist at the profit-maximizing level of output?

$3060,000

$3610,000

$3910,000

$3310,000

Question 4

What would be the industry output level if this was aperfectly competitive industryinstead?

Group of answer choices

3950

3800

2850

1900

Question 5

Now that you have calculated the monopoly equilibrium output level and the perfectly competitive industry output, can you calculate the numerical value of the inefficiency loss (deadweight loss) generated in the economy if the market is served by the monopolist?

Hint:Often it helps to draw the diagram with the demand curve, marginal revenue, and marginal cost information and then label the equilibrium output levels for each industry and the corresponding price levels.

$1500,000

$1650,000

$1805,000

$1900,000