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Unformatted text preview: b. (2) Graph the above situation and indicate the profit maximizing price and quantity for DOG Club. 110 20 MC 45 90 M R c. (2) Find the socially desirable output level (or the efficient output level). Social Optimal Level of output QO can be found where MB=MC Î P=MC 200-2Q=20 Î Q O =180/2=90 d. (2) Calculate the deadweight loss associated with this monopoly. DWL=Yellow Area=0.5*(110-20)*(90-45)=0.5*90*45=2025...
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- Spring '12