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Question: In the town of Inksville, Tats for Tots (i.e., TFT) is the only tattoo parlor dedicated to the un...

Show transcribed image text In the town of Inksville, Tats for Tots (i.e., TFT) is the only tattoo parlor dedicated to the under -18 age group. Being a monopolist, TFT hires you to advise the best price and quantity of tattoos to sell each month. You estimate the following inverse monthly market demand for tattoos; P = 1000-Q, where P is the price charged per tattoo and Q is the overall quantity of tattoos produced and sold each month. You also estimate the monthly total cost (TC) for TFT given by the following: TC = 20,000 + 200 Q. Determine the values of P and Q which maximize TET's profit. What is TET's profit at these optimal values of P and Q? What are the values of consumer surplus, producer surplus, market welfare, and dead weight loss these values of P and Q?

In the town of Inksville, Tats for Tots (i.e., TFT) is the only tattoo parlor dedicated to the under -18 age group. Being a monopolist, TFT hires you to advise the best price and quantity of tattoos to sell each month. You estimate the following inverse monthly market demand for tattoos; P = 1000-Q, where P is the price charged per tattoo and Q is the overall quantity of tattoos produced and sold each month. You also estimate the monthly total cost (TC) for TFT given by the following: TC = 20,000 + 200 Q. Determine the values of P and Q which maximize TET's profit. What is TET's profit at these optimal values of P and Q? What are the values of consumer surplus, producer surplus, market welfare, and dead weight loss these values of P and Q?