1. Sid is the CEO of a local power plant operating in monopoly market structure. a. Explain why the demand eurve (P) here is larger than the MR, and why Sid won't produce on the inelastic portion of demand curve. b. Draw a graph comparing Sid's market structure with a marketin perfect competition (on the same graph). Be sure to label the components of deadweight loss. c. On a separate graph, show the case where the monopoly is making a positive profit and label the profit area.

1. Sid is the CEO of a local power plant operating in monopoly market structure. a. Explain why the demand eurve (P) here is larger than the MR, and why Sid won't produce on the inelastic portion of demand curve. b. Draw a graph comparing Sid's market structure with a marketin perfect competition (on the same graph). Be sure to label the components of deadweight loss. c. On a separate graph, show the case where the monopoly is making a positive profit and label the profit area.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please A to D please please
Review the graph at right for a monopoly market (enter all of your responses as whole numbers). Price 100- How much is the consumer surplus? S 90- MC How much is the producer surplus? s 80- 70- How much is the deadweight loss? S 60 80- Monopoly total surplus is $ 50- Monopoly total surplus is V competitive total surplus. 40- 30- 20- 10- MR D 10 30 40 50 60 70 90 100 Quantity
Only typed answer and don't use chatgpt . B) A monopoly has two production plants with cost functions C1 = 50 + 0.1Q12 and C2 = 30 + 0.05Q22. The demand it faces is Q = 500 - 10P. What is the profit-maximizing price?
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please answer
2. a. State the assumptions of monopoly.
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