A Monopolist producing and supplying cooking gas to Mongolia faces the demand function. Q = 8800 – 20P. Its cost function is given by TC = 20Q + 0.05Q2 . i. Determine the quantity of cooking gas she will produce and the price she will charge to maximize profits and determine her profit. ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly competitive firm. iii. Illustrate and compute deadweight loss and lost consumer surplus associated with her Monopoly operations. b. Based on any community project of your choice, use indifference curves and the budget concept to illustrate your understanding of consumer equilibrium.

A Monopolist producing and supplying cooking gas to Mongolia faces the demand function.
Q = 8800 – 20P. Its cost function is given by TC = 20Q + 0.05Q2
.

i. Determine the quantity of cooking gas she will produce and the price she will charge to
maximize profits and determine her profit.
ii. Explain how her profits she will affected if regulators forced her to operate like a perfectly
competitive firm.
iii. Illustrate and compute deadweight loss and lost consumer surplus associated with her
Monopoly operations.

b. Based on any community project of your choice, use indifference curves and the budget concept to
illustrate your understanding of consumer equilibrium.