Question

A monopoly has the following demand and total cost curves: Demand: P=500-5Q Costs: TC=200Q+10Q^2 You also...

A monopoly has the following demand and total cost curves:

Demand: P=500-5Q

Costs: TC=200Q+10Q^2

You also know its marginal cost and marginal revenue curves:

MC=200+20Q

MR=500-10Q


What is the Deadweight Loss for Monopoly? What is Consumer Surplus? (Hint: it would help to draw a graph for this question, as you did in the Extra Credit)



Select one:
a. DWL=$100; CS=$250
b. DWL=$50; CS=$250
c. DWL=$100; CS=$150
d. DWL=$50; CS=$150
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