Monopoly

Question 1

Consider a monopolist with total costs of TC = Q2 + 4Q + 36 and marginal costs of MC = 2Q + 4.
They face a market demand of P = 100 - QD. Round answers to one decimal place.

1) What is the monopolist's marginal revenue equation?

MR = - QD

2) What is the monopoly equilibrium market price and output?

P* = Q* =

3) What is the monopolist's equilibrium profit?

Profit =

4) What are consumer, producer, and total surplus in the monopoly equilibrium?

CS = PS = TS =

5) How much dead-weight loss does the monopolist create?

DWL =

6) What is the monopolist's Lerner Index?

Lerner Index =

Score = 0