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McCullough has a monopoly on rental dwellings in the local community. The demand function for rental...

McCullough has a monopoly on rental dwellings in the local community. The demand function for rental dwellings is Q = 70,000 - 50P. McCullough's total cost of providing rental dwellings is TC = 0.005Q2 + 20Q

a. What price will this monopolist charge? What quantity will it sell? How much profit does McCullough make? (8 points)

b. What would output be if DD acted like a perfect competitor and set MC = P? What profit would then be generated? (6 points)

c. What is the deadweight loss from monopoly power in part a? (5 points)

d. In words, what does this deadweight loss represent? (5 points)

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