Monopoly (Constant MC): Solve for Consumer Surplus, Producer Surplus, Deadweight Loss

[@scennea]

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[@SureshKumar-mh2yn]

Thank you so much sir great video

[@mustaphacham4887]

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[@EconomicsinManyLessons]

Thank you so much!

[@azeemindawala]

How do you know what the price ceiling (if imposed) should be to break even?

[@EconomicsinManyLessons]

A firm will make zero economic profit if price equals average total cost. This point occurs where the demand curve interesects the average total cost curve. Set the inverse market demand equation equal to the average total cost equation and solve for quantity of output. Next, plug this answer into the inverse market demand to get price, which is the price ceiling the government should set.