A monopolist faces a market demand curve given by P(y)=100-y. Its cost function is C(y)=y2+20. a)...

A monopolist faces a market demand curve given by P(y)=100-y. Its cost function is C(y)=y2+20.

a) Find its profit-maximizing output level and market price.

b) Calculate its total revenue, total cost and profit at that output.

c) Calculate CS, PS and DWL? d) What is the efficient amount of output?

e) Plot the graph for this monopolist indicating P(y), MR, MC, y*, p(y*), CS, PS, and DWL.

Expert Solution

Rahul Sunny answered 2 hours ago

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