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.