300 220 MC=ATC 150 D MR 50 80 a) If the above figure represents perfectly price discriminating monopoly market, then i) how it would set output and charge price? Also find out ii) profit and iii consumer surplus and ii) deadweight loss for perfectly price discriminating monopoly. b) Now if the firm would behave like a perfectly competitive firm, then find out i) price and output i)profit and i) consumer surplus. And deadweight loss c) From your calculation of a) and b) which market is more desirable to consumer? And to producer? Give adequate reason.
300 220 MC=ATC 150 D MR 50 80 a) If the above figure represents perfectly price discriminating monopoly market, then i) how it would set output and charge price? Also find out ii) profit and iii consumer surplus and ii) deadweight loss for perfectly price discriminating monopoly. b) Now if the firm would behave like a perfectly competitive firm, then find out i) price and output i)profit and i) consumer surplus. And deadweight loss c) From your calculation of a) and b) which market is more desirable to consumer? And to producer? Give adequate reason.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Transcribed Image Text:300
220
MC=ATC
150
MR
50
80
a) If the above figure represents perfectly price discriminating monopoly market, then i) how it would
set output and charge price? Also find out ii) profit and ii consumer surplus and ii) deadweight loss for
perfectly price discriminating monopoly.
b) Now if the firm would behave like a perfectly competitive firm, then find out i) price and output
i)profit and ii) consumer surplus. And deadweight loss
c) From your calculation of a) and b) which market is more desirable to consumer? And to producer?
Give adequate reason.
P.
4.
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