Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Ecn502 Part 1) 6 marks In the table below are cost and demand data for a monopolist. Show all calculations. Quantity Price demanded Marginal revenue

Ecn502

image text in transcribed
Part 1) 6 marks In the table below are cost and demand data for a monopolist. Show all calculations. Quantity Price demanded Marginal revenue Average cost Marginal cost $105.00 96.00 $96.00 $144.00 $144.00 87.00 78.00 90.00 36.00 78.00 60.00 70.34 30.00 69.00 42.00 63.00 42.00 60.00 24.00 60.00 48.00 51.00 6.00 58.50 51.00 42.00 -12.00 57.86 54.00 8 33.00 -30.00 57.50 55.50 9 24.00 -48.00 57.33 56.00 (a) What is the level of price, output. and amount of profit for an unregulated monopolist that produces where MR=MC? (b) Using the data in the table, what is the price, output, and profit for a regulated monopolist that sets a "socially optimal" price i.e. where P-MC? (c) Using the data in the table, what is the price, output and profit for a regulated monopolist that charges a "fair-return" price i.e. where P-ATC? (d) Analyze the effect of regulation on the allocation of resources. Which situation is most efficient? Which situation is most likely to be chosen by g Part il) (4 marks) harees senior citizens & students $100 for a monthly pass. Everyone else pays $140 for a monthly pa

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

How The Old World Ended The Anglo-Dutch-American Revolution 1500-1800

Authors: Jonathan Scott

1st Edition

0300249365, 9780300249361

More Books

Students also viewed these Economics questions

Question

Context, i.e. the context of the information presented and received

Answered: 1 week ago