## Monopoly Example

Let inverse demand be $p=24-Q$ and the monopolist's cost function be $c(Q)=\frac{1}{2}Q^2$. Set up the monopolist's profit maximization problem and solve for the optimal $Q$ and $p$.

*Try this problem for yourself and then watch this video walking through the solution.*

## Monopoly Welfare Example

As in the last example, let inverse demand be $p=24-Q$ and the monopolist's cost function be $c(Q)=\frac{1}{2}Q^2$. We found in that example that the profit-maximizing quantity $Q^m=8$ and the profit-maximizing price $p^m=16$. What is the consumer surplus, producer surplus, and deadweight loss in this example? Find actual numbers!

*Try this problem for yourself and then watch this video walking through the solution.*

*Did you feel like any of the videos above were confusing, or could use more detail? If you're a student at Iowa State University, send me a quick note at mclancy@iastate.edu, referencing the video number and your issue, if applicable.*