Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost is MC=20 and the Marginal Revenue is MR=100-2Q.

1. Find the monopolist Quantity and Price.

2.Find the Deadweight loss relative to the perfectly competitive outcome.

3. A. Calculate the welfare for the monopoly market, before and after the introduction of a price ceiling.

B. Which scenario do the consumers prefer?

Answer rating: 100% (QA)

1 To find the monopolists quantity and price we need to equate marginal cost MC with marginal revenue MR and solve for quantity Q MC MR 20 100 2Q Rear... View the full answer