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solve parts e,f,g,h,i,j 1. A monopolist fuces a market demand PQ) = 10,000 - 200. The monopolist has no fixed cost and a constant average
solve parts e,f,g,h,i,j
1. A monopolist fuces a market demand PQ) = 10,000 - 200. The monopolist has no fixed cost and a constant average cost equal to 100 per unit produced. (a) Write the total cost function of the monopolist. (b) Write the profit maximization problem of the monopolist (e) Find the monopolist's profit maximizing quantity OM What price will the monopolist charge? (d) Compute the elasticity of demand at QM (e) Compute producer surplus, consumer surplus and deadweight loss (1) Antitrust authorities decide to allow some competition in this market. They give licenses for two more firms to enter the market. The three firms face the same original demand function and have similar cost functions. They compete in quantity. They all choose the quantity produced simultaneously. What do we call this type of competition? (e) Find the optimal quantity supplied by each firm. What is the equilibrium price? (h) What is the deadweight loss in this case? (1) Given the monopolist's historic dominant position, they actually enjoy an advantage in this market. They get to choose the quantity they wish to produce first, and then the two other firms make their production choices simultaneously after observing the choice made by the monopolist. What is the equilibrium quantity and price in this case? What about the deadweight loss? 6) Compare the three different equilibriums we computed in this exercise Step by Step Solution
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