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1. Suppose a monopolist faces an inverse demand function of P = 150 ? 2Q. The...

1. Suppose a monopolist faces an inverse demand function of P = 150 ? 2Q. The firm’s cost functions is 30Q.

(a) What is the firm’s marginal cost? Average cost? How about the firm’s marginal revenue?

(b) What would the firm charge if they were a single price monopolist?

(c) What is the consumer surplus, producer surplus, and dead weight loss.

(d) Suppose the monopolist is able to perfectly price descriminate, what are the consumer surplus, producer surplus, and dead weight loss?

(e) If all the consumers in the market are identical, is there any way the firm can capture the same producer surplus as the previous part?

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