Need assistance with this micro problem.
Let's say the cost function and the demand function of a monopolistic firm are as follows.
C = 10+q^2
p = 20-q
1) What is the price and output this monopolistic firm will produce?
2) What will be the price and quantity of the government mandated that this monopolist behaves as a perfect competitor (charges price of a perfect competitor and sells quantity of a perfect competition)?
3) What is the PS,CS, and total welfare when in perfect competition? Compute the numerical value of PS, CS and TW.
D) What is the PS, CS, and total welfare is monopoly? Compute numerical values.
E) Compute the deadweight loss when you move from perfect competition to monopoly?
F) If the government sets a price of p=10, what is the new price and quantity.