20th Assignment Consider a monopolist with a total cost of TC=24+2Q and marginal cost of $2 (MC=2). The monopolist faces a demand curve of P=16-Q. 1. Graph the monopolist. 2. Find price and quantity that the monopolist charges. 3. Find the profit and consumer surplus. 4. Find the deadweight loss to welfare.
20th Assignment Consider a monopolist with a total cost of TC=24+2Q and marginal cost of $2 (MC=2). The monopolist faces a demand curve of P=16-Q. 1. Graph the monopolist. 2. Find price and quantity that the monopolist charges. 3. Find the profit and consumer surplus. 4. Find the deadweight loss to welfare.
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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Transcribed Image Text:20th Assignment
Consider a monopolist with a total cost of TC=24+2Q
and marginal cost of $2 (MC=2). The monopolist faces
a demand curve of P=16-Q.
1. Graph the monopolist.
2. Find price and quantity that the monopolist
charges.
3. Find the profit and consumer surplus.
4. Find the deadweight loss to welfare.
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