consider once again the microchip market described in problem 9 of chapter 7. demand for micropocessors is given by P = 35 - 5Q. where Q is the quantity of microchips ( in millions ) . the typical firm's total cost of producing a chip is Ci= 5qi, where qi is the output of firm i.
a. suppose that one company acquires all the suppliers in the industry and thereby creates a monopoly. what are the monopolist's profit maximizing price and total output?
b. compute the monopolist's profit and the total consumer surplus of purchasers.