1)True/False Monopoly reduces social welfare so the government should always prohibit

Question

1)True/False: Monopoly reduces social welfare, so the government should always prohibit

monopoly(explain)

2)Assume the demand for GMs new Hummer H2 is P = 100000 – 500Q, the marginal revenue is MR = 100000 – 1000Q, and the marginal cost is MC = 600Q. a) Please figure out the profit maximizing P and Q. b) What is the consumer surplus and what is the producer surplus?

Economics