Question: Solve clearly 4. A monopolist faces the inverse demand function given by P=250-Q. MR = 250-2Q The total cost of producing the good is C(Q)

Solve clearly

4. A monopolist faces the inverse demand function given by P=250-Q. MR = 250-2Q The total cost of producing the good is C(Q) = 50+50Q. MC(Q)=50. Sketch the diagram of the monopoly. Indicate the monopoly quantity and price. Show the deadweight loss of this monopoly. Indicate on your diagram the optimal price ceiling placed on this monopoly

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