A monopolist has the following total cost curve:
TC(Q)= aQ + bQ^2, a, b >0
where Q is the output produced.
The demand curve for output is
P(Q)= d -eQ, d, e >0
where P(Q) is the price that consumers are willing to pay forQ units of output.
Find the welfare loss due to monopoly. Assume that acompetitive firm will equate marginal cost to price.