Question 2 Firm A is the sole producer of a sport drink Aâ€™s marginal cost equals average cost M C = A0 = 30, and it faces market demand given by inverse demand function P = 120 â€” 0562
(1) Suppose A produces quantity q = 140 units at price p = 50 Is there any
dead weight loss at current price and quantity? If yes, how much is the DWL?
(2) What is the monopoly price? What is the monopoly DWL?