(Answered) Assume that a monopolist sells a product with a total cost

Economics

Assume that a monopolist sells a product with a total cost function TC = 1,200 + 0.5Q2. The market demand curve is given by the equation P = 300 - Q.

a) Find the profit-maximizing output and price for this monopolist. Is the monopolist profitable?

b) Calculate the price elasticity of demand at the monopolist's profit-maximizing price.

c) What would price and output be if this firm acted like a perfect competitor? What is the firm's profit?

d) Suppose the government imposes a price ceiling of $175. How does this affect price, quantity, consumer surplus, and the monopolist's profit? What is the resulting deadweight loss? (Presume this part is referring to Monopoly, not Perfect Competition).

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