A single firm monopolises a market. There are ten identical consumers in the market (indexed i =1
to 10), each with the following demand: $q_i = 100 - P$
The firm has constant marginal costs, MC = 10.
Calculate the following:
a. The firm's profit maximising uniform price ($P_m$) as well as quantity ($Q_m$) that will be sold at this
price.
b. Calculate producer surplus (PS), the consumer surplus (CS) and the inefficiency that exist in the
market (DWL).
c. Sketch a well labelled graph for the uniform price monopoly firm.