Question: ( 2 0 2 2 Fall Final Q 5 9 - 6 4 ) A monopolist faces a demand curve of ( P =
Fall Final Q A monopolist faces a demand curve of P Q and has a constant marginal cost of $ per unit.
a Assume zero fixed cost of production. To maximize profit, the monopolist produces units and charges $ per unit.
b Assume zero fixed cost of production. If the government imposes a price ceiling at $ per unit, the monopolist will produce units.
c Assume zero fixed cost of production. If the government imposes a price ceiling at $ per unit, the deadweight lossa. increasesb. decreases
by $ compared to an unregulated market.
d Suppose fixed cost of production is nonzero. If the government imposes a price ceiling at $ per unit, the monopolist will not exit the market in the long run if the fixed cost isa. higherb. lower
than $
e Suppose the fixed cost of the monopolist is $ The lowest ceiling price that can be imposed by the government in the long run is $ per unit.
f Assume zero fixed cost of production. If the government provides a perunit subsidy of $ to the monopolist, the deadweight loss in this market is $
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