Question

number 2 a-d

1) Suppose the second-hand market for concert tickets is perfectly competitive and there are primarily 10 online websites where consumers can buy tickets. The following describes the market demand for concerts and the cost of selling tickets. Market Demand: Q = 480 - 4p. Cost to Fim: (q) = 2.57% + 100. Market Structure: Perfect Competition with N = 10 in the short-run.

Answer 1

- 4. a) utility: u= min{ 31,7} Budget : Y- 2.a) Market Demand : Q. 480-4 :: p = 120 -0.25 H.MR = 120 -0.52 b) Total variable cost: Trecca): me = 20 Equilibrium: MR = Mc .. or, 120-0.5Q = a, 120 = 0'5Q t 0.50 .: :.a=1203 The price of P = 90 monopolist: P G1 20-0:25 (120) 1. c) - 90 d) ) Profit : T: PQ - CCQ) - 100 - 10800- 412094-100 = 10800- 3600-100 = 7100 (vises) (ii) Producer sweples : (90-60)x120+4*120x420 77 = 3600+ 3600 = 1900 (rises) (ü) Consumer sweples : fx(120-90) x 120 1. = 1800 (falls) (iv) Total swepues: 9000 = CS + ps (falls) (vg Dead weight loss! sweptus in compt" - sweplus in monopoly - 9600 -9000 = 600 (rises)