Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I know that the new quantity and new dwl is correct but I don't know how to calculate them. I do not want a graph

I know that the new quantity and new dwl is correct but I don't know how to calculate them. I do not want a graph to solve it please thank you

image text in transcribed
Monopoly #1 Suppose a monopolist faces: Inverse demand: 180 - q Marginal cost = 2q (Recall once more than the MR curve has twice the slope of the inverse demand curve) 1. What is the profit-maximizing quantity? 4 5 2. What is the profit-maximizing price? 135 3. What is the efficient/perfect competition quantity? 6 0 4. What would the price be in perfect competition? |2 0 5. What is the deadweight loss? 337 . 5 Monopoly #2 Same facts as above, except that we are going to be playing with price ceilings. (Hint: drawing a picture really helps you figure out DWL) 1. What if there was a price ceiling = 100 (below monopoly price AND below perfect competition price)? a. New quantity 50 b. New DWL 150

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

The Routledge To Global Political Economy Conversations And Inquiries

Authors: Ernesto Vivares

1st Edition

1351064525, 9781351064521

More Books

Students also viewed these Economics questions

Question

Annoyance about a statement that has been made by somebody

Answered: 1 week ago

Question

Self-confidence

Answered: 1 week ago