Problem
Suppose the market demand for a product is given by=a-BQ, where and bare positive constants.A monopolist can provide the product at constant marginal cost c >0. Assumes < a. Compute the monopoly price and deadweight loss (DWL). Do the same exercise, if the cost function is given by C(Q) =cQ+(k/2)Q2,where c >0 and k≥0.