Suppose the monopolist faces the following demand curve: P = 100 - 3Q. Marginal cost of production is constant and equal to $10, and there are no fixed costs. What is the monopolist's profit maximizing level of output?
- What price will the profit maximizing monopolist charge?
- How much profit will the monopolist make if she maximizes her profit?
- What is the value of consumer surplus?
- What is the value of the deadweight loss created by this monopoly?