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A monopolist faces inverse demand p = 40 − 2q and has a marginal cost of...

A monopolist faces inverse demand p = 40 − 2q and has a marginal cost of 20.

(a) [20 points] What output will the monopolist produce?

(b) [10 points] What are consumer surplus, monopoly profits, and deadweight loss?

(c) [10 points] Suppose the monopolist’s costs rise to 90. What are consumer surplus, monopoly profits, and deadweight loss now?

Please help to explain part (c).

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