Monopoly a. Show that if the market inverse demand function is P(Q), the profit maximizing monopoly will charge a price equal to , where MC is the firm’s marginal cost of production and is the price elasticity of market demand. b. Calculate the deadweight loss to monopoly when the demand function is given by Q=100-P and C(Q)=4Q.

Monopoly
a. Show that if the market inverse demand function is P(Q), the profit maximizing
monopoly will charge a price equal to , where MC is the firm’s marginal cost of
production and is the price elasticity of market demand.
b. Calculate the deadweight loss to monopoly when the demand function is given by
Q=100-P and C(Q)=4Q.