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Q1) Consider monopolist facing demand curve Q = 100 - P. MC=AC=$20.

a. Determine monopoly price, profits, and consumer surplus.

b. Determine the perfectly competitive price, quantity, profits, and consumer surplus.

c. How much deadweight loss is due to monopolization?

d. If monopolist can perfectly price discriminate (1st degree), determine total quantity sold, marginal price for the last unit sold, consumer surplus, profit, deadweight loss.

 

Macroeconomics, Economics

  • Category:- Macroeconomics
  • Reference No.:- M922668

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