Question

i need help with number 2 a- d

1) Suppose the second-hand market for concert tickets is perfectly competitive and there are primarily 10 online websites where consumers can buy tickets. The following describes the market demand for concerts and the cost of selling tickets. Market Demand: Q = 480 - 4p. Cost to Fim: c(q) = 2.57% + 100. Market Structure: Perfect Competition with N = 10 in the short-run.

Answer 1

QO2 (a) Decive the MR: Market Demand = Q = 480-4b a þ=_480 – Q = 120-4 4 4 TR : 5.0 . = (120-3):2 TR E 1200 - Q² differentiating w.ota MR = 3TR - 15 - 20 : 10 - os & dQ IMR = 120-0:5Q_ [(b) Profit maximisation occuus when MR = MC ie че - Mo ad MC: Tuc et (given) d TVC = MC =_2Q = 05Q

MR = MC 120-0.5Q = Q = 120 0.5Q 120 = - 360 -4 480 – 45 12 = $ 90 I Pulting o into Market demand function . $ 90 & 3 I the The profit may mising price is quantity of tickets au 120. - dll dina we are not given any fixed cost of the flum ... the profits of the film I equals the producer suples .. TFC =0) Prefits = TR-TC. a = TR - TVC Cas 100 ŽŽ Profit (1 = 1200 - LRT 2 I Pulting Q = 120 we have (1) feofit = 120 (120) - (120,12 = $7200 2 1931

classmate Date Price ,MC =0.5Q bo la [ At E, MG -0.5X120 - 260 God- SD = 480-45 MR = 120-005Q aty 120 y case of je Monopoly | Piоduu su u : Consumee suplus = aua & abc 1 x base & height = fx 80 x 30 = $18001 w (OECD) s au bcEd + an Adeo CEx dE + x dox Ed 30 x 120 tla 60x1200 = 3600 + 3600 = $ 7200 which is consisten with ou result in i) ie Profits = Puducu suplus. Consumer surplus & Poodlucu suples 1800 + 7200 = $ to' 9000 Total suples : . Candid A4

To calculate Deadweight loss in monopoly, you have to subtract the total suples ie (Puducu & consunce suplus) of perfect competition as calculated in Qo (1) from the total simples of monopolst ie Total surplus of - Total suples of = DWL und perfect competition monopoly monopoly totalidad $ 9000 = SECM Has been assumed that you have already calculated it while doing at Qol. WL