Deadweight Loss

Given the following information:

Qs = 2P

P = Qs/2

QD= 180 - 4P

P = (QD -180)/-4

AR = P = 45-.25Q

TR = 45 - .25Q2

Hint: MC – supply curve

MR = 45 - 5Q

Qs = supply Qd = demand

Using the above information,

Graph and calculate the price-output solution under competitive market assumptions. How much is the                       consumer surplus           producer surplus and                        total surplus?

Calculate the price and the quantity demanded and supplied if the market is run by a profit maximizing monopoly

What is the deadweight loss if the market is run as a profit maximizing monopoly?

How much producer surplus is there if the market is operated as a monopoly?

Answer rating: 100% (QA)

To analyze the priceoutput solution under competitive market assumptions lets begin by graphing the demand and supply curves Demand curve QD 180 4P Su... View the full answer