Suppose that a firm has a monopoly on a good with the following demand schedule:
Price
|
Quantity
|
$10
|
0
|
9
|
1
|
8
|
2
|
7
|
3
|
6
|
4
|
5
|
5
|
4
|
6
|
3
|
7
|
2
|
8
|
1
|
9
|
0
|
10
|
a . What price and quantity will the monopolist produce at if the marginal cost is a constant$4 ?
b. Calculate the dead weight loss from having the monopolist produce , rather than a perfect competitor