The following description will be used in questions 7 to 12….

The following description will be used in questions 7 to 12.   A firm produces x according to the cost function c(x)=20x+25. The demand for x is represented by the inverse price demand curve p=A-bx, where p is the price faced by consumers and A and b are positive numbers.

By solving question 10, you can see that the market will off…

By solving question 10, you can see that the market will offer 40 units of x and sell them at a price of 20. As expected, the competitive market can offer x at a lower price than the monopoly. Use this information to calculate the dead weight loss from the monopoly.

The following description will be used in questions 2 to 6….

The following description will be used in questions 2 to 6. Consider two distinct production functions (f1 and f2) that use two inputs (x1 and x2) to produce one output (y). Such functions have the form f1=min (a*x1 , b*x2) and f2=c*x1+d*x2, where a,b,c and d are positive scalars, p1 is the cost of one unit of input x1, p2 is the cost of one unit of input x2, and y represents the production level.