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Hi I was wondering if you could help me with these questions, I am having trouble understanding them and would really appreciate the help. I
Hi I was wondering if you could help me with these questions, I am having trouble understanding them and would really appreciate the help. I was also wondering if you could show all your steps. thank you :)
Suppose that a firm has a constant Marginal Cost equal to $20 per unit. This firm has fixed costs equal to $200. This firm is a monopolist and faces the following Demand Function: 10. 11. 12. 13. Q = 60 0.5;) What quantity will this rm choose to produce and what price will it charge? [2 points] Draw a figure with quantity on the x-axis and price on the y-axis. Include thew firm's Marginal Cost (MC), Marginal Revenue (MR), and Demand Curves. Show where this monopolist produces on this figure. [2 points] What is this firm's total profits at the price and quantity you found in 03? [1 point] At this price and quantity (from C19), what is the Consumer Surplus (CS), Producer Surplus (PS), and Deadweight Loss {DWL)? [3 points] What is the (numerical) difference between this firm's total profits and producer surplus in this example? [2 points]Step by Step Solution
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