Question

1. Consider a small isolated town with a single brewery with a the inverse demand curve for beer -- p = 15 - 0.33Q^D. The brewery can produce beer at a constant marginal and average cost, MR = ATC = $1. What is the brewery's profit maximizing output (you may round)?

2. Consider a small isolated town with a single brewery with a the inverse demand curve for beer -- p = 15 - 0.33Q^D. The brewery can produce beer at a constant marginal and average cost, MR = ATC = $1. What is the brewery's profit maximizing price (you may round)?

3. Consider a small isolated town with a single brewery with a the inverse demand curve for beer -- p = 15 - 0.33Q^D. The brewery can produce beer at a constant marginal and average cost, MR = ATC = $1. What is the consumer surplus at the brewery's profit maximizing Q and P (you may round)?

4. Consider a small isolated town with a single brewery with a the inverse demand curve for beer -- p = 15 - 0.33Q^D. The brewery can produce beer at a constant marginal and average cost, MR = ATC = $1. What is the producer surplus at the brewery's profit maximizing Q and P (you may round)?

5. Consider a small isolated town with a single brewery with a the inverse demand curve for beer -- p = 15 - 0.33Q^D. The brewery can produce beer at a constant marginal and average cost, MR = ATC = $1. What is the deadweight loss created by this monopoly (you may round)?

Answer 1

MRne. 150 pie o 15 - 0.3300 Profit is maximized when 0,3302 TR - (IS-0.330 O MR = (TR) 15- 200.330) 15- 0.668 -) 0.66 15-0.660 15-114 So, MR = MC 14 o= al.all 15-0.33 (91.21) = 15 -6.9993 0.33 Q = 15- P = 0.66 LP:8 b B A 15 B when do; p= 15 when peo; 0.330 = 1) 45.us 0.33 MR 15-0.660 when MR-O 0.66 So, 8 E MC ATC i =22.73 MR ♡ او في '22.73 4297 us.us cs = area ABC = I XBCX AC = ²21.21x (15-8) 91.21x7 => [cs= 74,94? CBEF FEXOF (21.01)(8-1) TPS-148.47 Ps = area = 1.21 X 7 ③ Dwe At p 0.330-15-1=14 & wela EGB = - REGXE B MC 15-0.330 I =) Q = 42.43 0.33 tx(42.43-01.91) (8-12-Źx91.02 X7 2 DWE 74.27 cs Sdanned with CamScanner