Question
Suppose a certain city has a monopoly cable-television company.With demand of Q d = 30 - P/10 (alternatively, you can write the demand equation as
Suppose a certain city has a monopoly cable-television company.With demand of Qd = 30 - P/10 (alternatively, you can write the demand equation as Qd = 30 - 0.1P) and MC = 5Q.
I need help to produce the graph which shows demand and marginal cost (MC) curves, as well as any other necessary curves.
I need help to graphically indicate the socially optimal output level, Qsoc, and compute the size of this output.
I need help to depict areas of consumer surplus (CS), producer surplus (PS), and any possible deadweight loss (DWL).(I do not have to determine the numerical size of CS, PS, and DWL, just show them graphically.)
I need help to explain how I determined the socially optimal output level, and how does the socially optimal output compare to the monopolist output in terms of CS, PS, and DWL?
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