Question: Would you please help me with Question #4 ? 4. A monopolist can produce at constant average and marginal costs of AC=MC=5. The firm faces

Would you please help me with Question #4 ?

Would you please help me with Question #4 ? 4. A monopolist

4. A monopolist can produce at constant average and marginal costs of AC=MC=5. The firm faces a market demand given by Q = 53 - P. (a) Calculate the profit-maximizing price-quantity combination for the monopolist. Also calculate the monopolist's maximum profits. +>= visvito9q291 976 boog 6 101 noidonut vigque bnis brismob sT . notgsdo to hisq insveley ends baer) alavishs 20itsJe evilsisgmo) . emooni zi l bas song 21 9 ,dunsup a1 0 (b) What output level would be produced by this industry under perfect competition (where price = marginal cost)? ubnoo ed nBo In This lb \\Ob evheb neris bris I to noldonut s 26 9 bnis ( 101 9vloe visioilqx3 (i) :zysw evilsmells (c) Calculate the consumer surplus obtained by consumers in case (b). Show that this exceeds the sum of the monopolist's profits and the consumer surplus received in case (a). What is the value of the bnis "deadweight loss" from monopolization. (6 21939m6169 907 OfSmut 6 26 Jaxism airli 101 song bnis yinsup mundiliups sisluols) (6) Consumer surplus = 7 (24) x (24) = 288 1 bos (b\\Ob bris lb\\qb zevitsvip 20116)/ evilmsgmon, grit 9islupiso of (6) msg mont ellues1 woy 92U (d) Profits = vigque to alzylens zoitsta evilsingle\\ ords greu ibb (24) x (24) = 576 Deadweight loss = itsvigb smee erdt 9isluolso wol () 16rij word of olds ed bluorla 29 . revoux bodiyesb (it (24) x (24) = 288 0 airli ni beingzeig basmeb bris 9260 ross ni 2flu291 amse adi 198 uoY 5 24 48 53 se armit Isolinsbi 0Of to bezogmoo al yuleubni xodflung ebsmbnal erIT .S

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!