A monopolist faces a demand curve given by P = 220 - 3Q where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $40. There are no fixed costs of production.
a. How much profit will the monopolist make?
b. What is the deadweight loss created by this monopoly?
c. If the market were perfectly competitive, what quantity would be produced?