A monopolist faces a market demand curve given by P(y) = 100 y. Its cost function is c(y) = y 2 + 20.
(a) Find its profit - maximizing output level y and the market price p(y ).
(b) Calculate its total revenue, total cost, and profit at y .
(c) Calculate the value of consumer surplus (CS).
(d) Calculate the value of producer surplus (P S).
(e) What is the deadweight loss (DWL) equal to for this monopolist?
(f) What is the efficient (competitive) amount of output y e ?
(g) Provide a graph for this monopolist indicating P(y), MR, MC, y , p(y ), CS, P S, and DWL.