PROBLEM II. In a market of a certain product, there is a monopolist with a cost...

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PROBLEM II. In a market of a certain product, there is a monopolist with a cost function C(Q) = 2, while the inverse demand function is given by P)600 2Q. Compute the monopoly equilibrium quantity Qm and price Pm, Q3. The monopoly equilibrium quantity Qis (a) Q 240 (b) Q60.

c)Q 90. (d) Q,n= 180 (e) Q 120 Q4. The monopoly equilibrium price Pis (a) Pm 240 (b) P 220 (c) Pm 360 (d) P420 (e) Pm 380 Q5. The socially optimal quantity Q is (a) 200. (b) 80. (c) 160. (d) 360. (e) Q.= 180. 6. Compute the aggregate consumer surplus under the monopoly equilib- um (a) 14,400 (b) 16,000 (c) 8,200 (d) 9,600 (e) 4,800 Q7. What is the size of deadweight loss due to monopoly in this market? (a) 14,400 (b) 16,000 (c) 8,200 (d) 9,600 (e) 4,800

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2- unswer i (e) unw v is (c) Miu antwe () づ:, cS Monopoly 60-200 120 2סט

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