cme corp. produces rockets which it sells to Wile E. Coyote and others. Suppose that Acme is a monopolist and the inverse demand function for rockets is Q^d=10,000-40Q. Furthermore, suppose that the cost function for Acme can be expressed as C(Q)=120,000+1500Q+15Q^2.
–Calculate the price and quantity the monopolist would sell.
–What is the firm’s profit?
–Calculate the consumer surplus, producer surplus, and any deadweight loss that is the result of monopoly pricing.