a. Assume that a monopolist decides to maximize revenue rather than profit. How does this operating objective change the size of the deadweight loss? If you are a "benevolent" manager of a monopoly firm and are interested in reducing the deadweight loss of monopoly, should you maximize profits or maximize revenue? Explain your answer.
b. Graphically depict the deadweight loss caused by a monopoly. How is this similar to the deadweight loss from taxation?