# What was the industry equilibrium price and output under perfect competition?

Suppose a monopolist has a constant marginal cost of \$20 per unit and a fixed cost of \$100. The dem Show more Suppose a monopolist has a constant marginal cost of \$20 per unit and a fixed cost of \$100. The demand curve for the product of the monopolist is given by P=100-Q and its corresponding marginal revenue is given by MR=100-2Q where Q is the amount of sales. What are the profit maximizing price quantity What is the maximum profit? Suppose that the above monopoly market was once a perfectly competitive one before it suddenly become a monopoly. So the current monopolist demand P=100-Q was the industry demand under perfect competition and the (constant) marginal cost of each firm was \$20 under perfect competition. What was the industry equilibrium price and output under perfect competition? Calculate the deadweight-loss from monopoly and use graphs to demonstrate it. Show less

### QUICK QUOTE

Approximately 250 words
\$12