Question

Total Points 100 pts. Il credit will be given only when () your answers are correct and (a) you explain the steps or reasoning behind your answers. . Due date: Thursday, Dec a7th 2018, in class and in hard copy cost as follow: TC 0.Q2+ Q +10 and MC -o.2 Q +1. It faces the demand curve Q 35- 5P. (35 points) a) What are the price, output, and profit for this monopolist? b) Carefully draw the diagram that illustrates your answers. o) What are the equilibrium price, output, and total proft if this is a perfectly competitive market? D Calculate the consumer surplus, producer surplus, and deadweight lossif this is a perfectly competitive market. Illustrate your answer with a diagram. (You can use the same diagram above.) g) Does the firm perform economic efficient in each market? Explain. 2. Assume that a firm is uncertain about the future demand for its product t sizes. The short-run cos curves for the four plan sizes are given by SAC, (amal), SACa (medium), SAC3 (arge), and SACa (extra-lange), Illutrate your answer in a figure how can the firm choose the optimal plan size to build average cost curve of the firm. (z0 points)

Answer 1

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