10147 4 .I 9? [3' w A 3} 30 V L\" 70 . 2 n: so 0. 50 40 30 2" D I l | | r | 20 30 40 50 60 70 If this market is in equilibrium, the price = and output = Is there any deadweight loss? (yes or no) If a monopoly raised the price to $80. the approximate output be . At this new price. would there be any deadweight loss? (yes or no) coursehero.com 10147 4 .I 9? [3' Question 11 3 pts Below is a graph of a monopoly rm. Estimate how much this monopoly is earning in prots or losses. (Either draw the rectangles virtually and nd the area or use the Prot Equation from the lecture). 'Use a negative sign in front of the number to indicate Losses. As long as you are in the ballpark, Canvas should mark it correct. COST 120 11 MC 100 ATC so 70 so so 40 so 20 D MR l | | l I l 20 30 4o 50 60 1o OUTPUT coursehero.com 10147 4 .I 9? [3' Question 8 A ve-rm industry has market shares equal: 65, 15, 10, 5, and 5. The industry's HHI = This industry highly concentrated. (answer is or is not) A merger in this industry likely to be approved. (answer is or is not) coursehero.com 10:47 7 Question 5 What is price discrimination and why do firms price discriminate? coursehero.com10147 4 .I 9? [3' Question 10 3 pts ' Below is a graph of a monopoly rm. Estimate how much this monopoly earning in prots or losses. (Either draw the rectangle virtually and nd the area or use the Prot Equation from the lecture). 'Use a negative sign in front of the number to indicate Losses. As long as you are in the ballpark. Canvas should mark it correct. COST 20 30 40 50 60 70 OUTPUT coursehero.com 10:47 7 Question 7 2 pts In Industry 1, the four largest firms have market shares of 55%, 15%, 5%, and 5%. In Industry 2, the four largest firms have market shares of 30%, 25%, 15%, and 10%. What is the four-firm concentration ratios for each industry? Industry 1 = Industry 2 = Which industry is expected to be more competitive and thus more likely to be allowed to merge? coursehero.com m10:47 7 Question 9 3 pts The graph below depicts an industry that has been monopolized. 120 110 100 S 90 80 70 PRICE ($) 60 50 40 30 20 D MR 20 30 40 50 60 70 AUTOLIT coursehero.com m10:47 7 Question 3 3 pts Springfield Utility District (SUD) is a local electrical utility company and a natural monopoly. The marginal cost (MC), average total cost (ATC), demand (D) and marginal revenue (MR) curves for the company are shown below. PRICE AND COST B ATC MC MR D OUTPUT The point where this firm, SUD, is producing [ Choose ] at if it is unregulated. The point where this firm, SUD, is producing [ Choose ] if it is regulated using the Average Cost Pricing Rule. The point where a competitive firm would be [ Choose ] producing. coursehero.com m10:47 7 Question 4 Explain the profit maximizing rule for monopolies? Is this the same as for competitive firms? coursehero.com m