Question

4) Refer to Figure 15-11. Following the entry of Verizon, the subscripsion price talls rom PMt to Pc What is the increase in consumer surplas as a result of this changs A) the area B+C Q) the area D+F B) the area B+C.D D) the area A B 5) Refer to Figure 15-11. What is the size of the deadweight loss prior to Verizon entering the market5) and what happens to this deadweight loss after Verizon does enter the market? A) The deadweight loss of area C+D is converted to consumer surplas B) The total deadweight loss is the area DeF: D is comverted to consumer surplus and F to producer surplus C) The deadweight loss of area D is converted to consumer surplus. D) The deadweight loss of area D is coeverted to producer surplus ESSAY. Write your answer in the space provided or on a separate sheet of paper Figure 15-19 Price S95ト and cost per unit 70 59 ATC 35 MC 20 MR Quantity 580 835 6) Refer to Figure 15-19 to answer the following questions a. What quantity will this monopoly produce and what price will it charge? b. Suppose the monopoly is regulated. If the regulatory agency wants to achieve economic efficiency, what pri should it require the monopoly to charge? c. To achieve economic efficiency, what quantity will the regulated monopoly produce? d. Will the regulated monopoly make a profit if it charges the price that will achieve economic efficiency? e. Suppose the government decides to regulate the monopoly by imposing a price ceiling of $35. What quantity the monopoly produce and what price will the monopoly charge? f. With the price ceiling of $35, what profit will the monopoly earn?
4-5

and 6E and F

Answer 1

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