Suppose that the demand for a good is given by Qd = 1000 − 20p and that each unit can be produced at a cost of 8.
a) Assuming this market is served by a monopolist, find the profit-maximizing quantity and price.
b) Assuming this market is perfectly competitive, find the quantity and price in equilibrium.
c) Illustrate your answers in b) and c) on a graph and show the deadweight loss of the monopoly.