ASAP needed!
1). Consider an industry wherein the demand and cost conditions are given as follows: Market demand P = 120 - Q.
Costs are constant MC = AC = 20
a. Solve for the monopoly market equilibrium price and quantity.
b. Solve for the equilibrium price and quantity that would exist if the market is perfectly competitive.
c. Draw a picture to illustrate your answers to (a) and (b).
d. Demonstrate graphically and compute numerically the amount of dead weight loss that exists in the monopoly market solution.
2) Suppose that you are the owner of a metals-producing firm that is an unregulated monopoly. After considerable experimentation and research, you find that your marginal cost curve can be approximated by a straight line, MC = 60 + 2Q, where MC is marginal cost (in dollars) and Q is your output. Moreover, suppose that the demand curve for your product is P = 100 - Q, where P is the product price (in dollars) and Q is your output
a. If you want to maximize profits, what output should you choose?
b. What price should you charge?
c. If you want to maximize sales revenues, what output should you produce? What price should you charge? Explain