Suppose the market for agricultural machinery, including crop sprayers, in a region is monopolized by one company, Jack Rein Deere. The market demand for sprayers is given by Q = 1250 - 0.05P. The monopolist's supply curve for sprayers is given by Q = 0.1P.
a. Find the profit maximizing output and price level for this firm.
b. What would be the equilibrium price and output if this market was instead perfectly competitive?
c. Using a graph, calculate the deadweight loss from the monopolization of this market by Jack Rein Deere.