Consoder a monolist facing a linear demand Q=60-P/3. The monolist products with constant marginal costs c=3 and no fixed costs. Its marginal revenue function is MR=60-6Q

Question

A) plot demand function in a picture together with the marginal revenue curve and marginal cost curve. Indicate on the picture the monolist profit.

B) find the monolist price, the monopolist quantity.

C) compute the consumer surplus and the deadweight