mangerial economics
posted by Sam .
a monopolist has the following demand and Tc functions:
Q=2,50025P
TC= 100,000 + 20Q+ 0.05Q^2
How much consumer surplus ($) will a monopolist transfer to itself

Take a shot, what do you think?
Hint: On a graph, Consumer surplus is the area below the demand curve but above price. Compare the area using the Price the Monopolist would change to maximize his profits vs the price where P=MC. You will need to use some geometry.
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