The following cubic equation is a long-run production function for a firm: Q = -0.002K3L3 + 6K2L2 Suppose the firm employs 10 units of capital.
September 3, 2020
In a day of production, firms in Angola can produce 200 liters of oil or 100 kilograms of tungsten. Firms in Namibia can produce 160 liters of oil or…
September 3, 2020

4. (28 points) Suppose a monopolist faces the following demand curve:P = 180 – 4Q. Also, the long run total cost of the monopolist is given by 40Q +1.5Q2. Therefore, long run marginal cost is 40 + 3Q.A) What is the monopolist’s profit maximizing level of output?B) What price will the profit maximizing monopolist charge?C) What would be the value of consumer surplus if the market were perfectly competitive? D) What is the value of producer surplus under perfect competition?E) What is the value of consumer surplus under monopoly?F) What is the value of producer surplus under monopoly?G) What is the value of the deadweight loss when the market is a monopoly?

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