a) b) c) The graph below depicts an industry that has been monopolized. 120 110 S...

Question

Question

a)

b)

c)

Answer 1

Answer #1

Q1) at monopoly eqm, MR = MC

P* = $ 65

Q*= 32.5

Deadweight loss = yes

P= 80, Q = approximately 21 or 22

Deadweight loss = yes

Qb)

Profits rectangle

Below is a graph of a monopoly firm. Estimate how much this monopoly earning in profits or losses. (Either draw the rectangle c)

Losses

Bcoz at eqm, P > ATC

120 110 MC 100 ATC 90 80 70 COST 60 50 40 - 30 20 D MR - 20 30 60 70 40 50 OUTPUT

Answer 2

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