Calculate monopoly profit maximization and market efficiency analysis
Monopoly Profit Maximization: Set MR = MC, where MR = a - 2bQ for linear demand.
Optimal Quantity: Q* = (a - MC) / (2b)
Optimal Price: P* = (a + MC) / 2
Market Power: Ability to set price above marginal cost, measured by (P - MC)/P.
Deadweight Loss: Economic efficiency lost due to monopoly pricing above competitive level.
Consumer Surplus: Reduced under monopoly compared to perfect competition.