3. Shaughnessy Consulting, LLC currently

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January 14, 2021
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3. Shaughnessy Consulting, LLC currently

3. Shaughnessy Consulting, LLC currently enjoys a patent on software that estimates economicdamages for clients involved in personal injury lawsuits. Demand for my software isQD = 80 2P. Creating the software cost me about $2,000 in development and coding. I canproduce a copy of the software for $2 per unit (constant cost).a. How many copies of the software should I attempt to sell? At what price should I sell it?How much profit would I make?b. My patent expires in a year, and I know other economic consultants will producecompeting software. What quantity and price will result once competing softwareemerges? How much consumer surplus will my clients (lawyers) gain once thecompetitors enter? (For measuring consumer surplus, recall that area of a triangle = *base * height.)c. How much deadweight loss is created by my patent and monopoly in this software?
 
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