1. Consider a market with inverse demand P (Q) = 100 Q. A monopolist with linear cost C(Q) = 20Q serves this market.
(a) Find the monopolistís optimal price and quantity.
(b) Find the price, quantity, proÖt, consumer surplus, and social welfare under perfect competition.
(c) Find the optimal proÖt, consumer surplus, social welfare and the deadweight loss for monopoly.
(d) What is the % loss in social welfare as we move from perfect competition to monopoly.
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