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Homepage-ECON 1E03Bonus Pre-Test AssignmeTake a Test-Aashraya M C Chegg Study I Guided 5cx C Secure https://www.mathxl.com/Student/Player lestasp history d-96093 1 1/3201 //82&testid;=1/3201//g ccng econ xly62fsl Econ 1B03 Evening Section Aashraya Mehta a Quiz: Bonus Pre-Test #3 Submit Quiz This Question: 1 pt 5 of 17 This Quiz: 20 pts possible A monopolist faces market demand of P = 100-Q. Its MR = 100-2Q, MC = 2Q, and ATC = Q. Determine the monopolist's quantity produced, price, profit, and deadweight loss The monopolist's quantity is The monopolist's price is $ The monopolist's profit is $ The monopolist's deadweight loss is $ (Round to the nearest cent as needed.) Enter your answer in each of the answer boxes Save for Later 945 AM O Type here to search

Explanation / Answer

P = 100 - Q

MR = 100 - 2Q

MC = 2Q  

AC = Q

AT optimal

MR = MC

100 - 2Q = 2Q

100 = 2Q + 2Q

100 = 4Q

Q = 25

so monopolists quantity Q = 25

P = 100 - 25

P =75

monopolist price P = 75

Monopoly Profit = TR - TC

= PQ - AC(Q)

= (P - AC)Q

= (P - Q)Q

= (75 - 25)25

= 1250

In order to find DWL

we find both quantities of monopoly and competitive

We have got

PM = 75

QM = 25

For competitive

P = MC

100 - Q = 2Q

Q = 100/3

P = 100 - 100/3

P = 200/3

SO DWL = 1/2(75 -50)(100/3 - 25)

= 625/6

= 104.16

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