4. A fictitious cable company, Rox Communications, has a monopoly over the cable services industry in Rhode Island. The market demand curve for cable is P = 1000 – Q,where Q, the firms output, is here the number of hundreds of households with cable. The cost of supplying Y hundred households with cable is TC(Q ) = 500 – 50Q + 2Q*Q.MR=1000-2Q and MC=4Q-50.
a. Find the level or output.
b. What is price in equilibrium?
c. What is the DWL due to the monopolist?