Calculation of optimal price - quantity in monopoly
Suppose which a industry has a monopoly on a good with the following demand schedule:
Price Quantity
$10 0
9 1
8 2
7 3
6 4
5 5
4 6
3 7
2 8
1 9
0 10
a . Illustrate what price also quantity wil the monopolist produce at if the marginal cost is a constant$4 ?
b. Compute the dead weight loss from having the monopolist produce , rather than a perfect competitor