Suppose a monopolist faces the following demand curve:
p=250-2q
Marginal cost of production is constant and is $10, and there are no fixed costs.
What is the profit maximizing level of output?
What profit maximizing price will be charged?
How much profit will be made if profit is maximized?
What would be the value of consumer surplus in the monopoly market?
What would be the value of consumer surplus in a perfectly competitive market?
What is the value of the deadweight loss when the market is a monopoly?