Question

Paste BI Uv v Aviv X v fx 017 165) 166 The following table shows the demand curve in the schmoo market controlled by a single seller. Assume the 167 monopoly has no fixed costs and its marginal cost is constant at 54 per unit Complete the table by calculating total 168 revenue (TR) and marginal revenue (MR) Graph the demand curve, marginal revenue curve, marginal cost curve, and 169 the average cost curve in the graphing area provided following the table. 170 MRMC 210 160 80 182 100 0 184 Note Drowth such that it has the same vertical repas the curve 185 is at the midpoint of the intersection of with the horizontalis 186 0 10 20 30 40 50 60 70 80 100 110 HW12 CH13 Ready

Answer 1

Refer the table for the balnks

Elasticity $ $ $ 100 9 10 20 7 30 6 4 0 50 60 3 7 0 80 90 . 100 NWU $ $ $ $ $ $ $ $ $ $ $ TR TMRMC - - $ 90 $ 9 $ 160 $ 7 $ 210 $ 5 $ 240 $ 3 $ 250 $ 1 $ 240 $ (1) $ 210 $ (3) $ 160 $ (5) $ 90 $ (7) $ - $ (9) $ 4 4 4 4 4 4 4 4 4 4 4 - 19 -5.67 -3 -1.86 -1.22 -0.82 -0.54 -0.33 -0.18 -0.05 $ 1 $

Refer the attached picture

Price -Demand MR 0 10 20 30 40 70 80 90 100 110 50 60 Quantity

14. After what price does demand become inelastic?

c. $ 5

15. Monopolist maximizes profit at the point where MR = MC

c. $ 7 and 30 units

16. Profit of monopolist

Profit = 7*30 -4*30 = $ 90

Option A. $ 90

17. In perfect competiotion price is equal to MC. Therefore, in case if it was perfect competition them

Price = $ 4

Quantity = 60 units

option B.

18. Dead weight loss = (1/2)*(7-4)*(60-30) = 0.5 * 3 * 30 = $ 45

Option A.

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