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.