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MBA, Ph.D in Management
Harvard university
Feb-1997 - Aug-2003
Professor
Strayer University
Jan-2007 - Present
Consider a situation where a monopolist faees the following inverse market demand curve
a = lflfl — a and the following eost flmction
T0 = 4;,- + qr2 a) Derive the marginal revenue and marginal eost flmctions. b) What are the equilibrium price and quantity if this market behaved as ifit were perfectl},r
mmpetitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect oom—
petition. d) What are the equilibrium prioe and quantity when the monopolist produces as a monop—
olist‘? e) Calculate the Consumer Surplus, Producer Surplus and 1‘.i"i.i'elfa.re levels under monopoly.
f) How much deadweight loss does the monopolist create?I g) 1What mold the government do to regulate the monopolist?
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