a. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to _______________________________
b. If the monopoly firm perfectly price discriminates, then consumer surplus amounts to _______________________________
c. If the monopoly firm is not allowed to price discriminate, then the deadweight loss amounts _______________________________
d. If the monopoly firm perfectly price discriminates, then the deadweight loss amounts to _______________________________
e. If there are no fixed costs of production, monopoly profit without price discrimination equals _______________________________
f. If there are no fixed costs of production, monopoly profit with perfect price discrimination equals _______________________________
Homework Answers
- If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to be area of triangle made between quantity (500-0) units and price (35-10).
Area of Triangle=0.5*B*H
=0.5*500*25
=$6250
b.
If the monopoly firm perfectly price discriminates, then
This condition will be
MR=MC
consumer surplus amounts will be area of triangle made between quantity (250-0) and price (35-22.5).
Area of triangle=0.5*B*H
=0.5*250*12.5
=$1562.5
c.
If the monopoly firm is not allowed to price discriminate, then the deadweight loss amounts will be zero. This is because efficient quantity is produced which is 500 units and price $10.
d.
If the monopoly firm perfectly price discriminates, then the deadweight loss amounts to a
DWL will be the area of triangle made between price (22.5-10) and quantity (500-250)
DWL=0.5*B*H
=0.5*250*(22.5-10)
=125*12.5
=1562.5
Add Answer to:
a. If the monopoly firm is not allowed to price discriminate, then consumer surplus amounts to ________________________...
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Part 1
Suppose a firm operating in a competitive market has the
following cost curves:
a. If the market price is $10, what is the firm’s economic
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b. If the market price is $10, what is the firm’s total cost?
c. If the market price is $10, what is the firm’s total
revenue?
d. The firm will earn zero economic profit if the market price
is
e. If the market price is $4, what is the firm’s decision in...
1. If the monopoly firm perfectly price discriminates, then the deadweight loss amounts to _______________________________ 2....
1. If the monopoly firm perfectly price discriminates,
then the deadweight loss amounts to
_______________________________
2. If there are no fixed costs of production, monopoly
profit without price discrimination equals
_______________________________
3. If there are no fixed costs of production, monopoly
profit with perfect price discrimination equals
_______________________________
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1.) Using the point drawing
tool,
indicate the monopoly's profit-maximizing price and quantity in
the figure if it cannot price discriminate. Label this point
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2.) Using the rectangle drawing
tool,
indicate the monopoly's losses at the no price discrimination
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Part 1
Suppose a firm operating in a competitive market has the
following cost curves:
a. If the market price is $10, what is the firm’s economic
profit?
b. If the market price is $10, what is the firm’s total cost?
c. If the market price is $10, what is the firm’s total
revenue?
d. The firm will earn zero economic profit if the market price
is
e. If the market price is $4, what is the firm’s decision in...
1. If the monopoly firm perfectly price discriminates,
then the deadweight loss amounts to
_______________________________
2. If there are no fixed costs of production, monopoly
profit without price discrimination equals
_______________________________
3. If there are no fixed costs of production, monopoly
profit with perfect price discrimination equals
_______________________________
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2.) Using the rectangle drawing
tool,
indicate the monopoly's losses at the no price discrimination
profit-maximizing price and quantity. Label this rectangle
'Losses 1Losses1.'
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