A monopoly has long run total cost given by: TC = 61 + 6'Q + 0.4'Q, where Q represents the units of output. The market demand is given by: P= 194 -1.9Q. The monopolist's marginal revenue and marginal cost functions are: MR(Q) = 194 - 2'1.9°Q= 194 - 3.8Q and MC(O) = 6+ 20.4°Q= 6 0.8°Q. The profit-maximizing level of output for this monopolist is QM = 40.87, the monopolist's price is PM $116.35, and the monopolist earns profit of $3780.9. Consumer surplus under monopoly is CSM - $1586.8. =) What is producer surplus under monopoly? "SM= (Round to one decimal place.) p) What is the total welfare for this market under monopoly? WM= (Round to one decimal place.)
A monopoly has long run total cost given by: TC = 61 + 6'Q + 0.4'Q, where Q represents the units of output. The market demand is given by: P= 194 -1.9Q. The monopolist's marginal revenue and marginal cost functions are: MR(Q) = 194 - 2'1.9°Q= 194 - 3.8Q and MC(O) = 6+ 20.4°Q= 6 0.8°Q. The profit-maximizing level of output for this monopolist is QM = 40.87, the monopolist's price is PM $116.35, and the monopolist earns profit of $3780.9. Consumer surplus under monopoly is CSM - $1586.8. =) What is producer surplus under monopoly? "SM= (Round to one decimal place.) p) What is the total welfare for this market under monopoly? WM= (Round to one decimal place.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![•A monopoly has long run total cost given by: TC = 61 + 6'Q + 0.4°a?, where Q represents the units of output.
• The market demand is given by: P = 194 - 1.90.
• The monopolist's marginal revenue and marginal cost functions are: MR(Q) = 194 - 2'1.9°Q = 194 - 3.8*Q and MC(Q) = 6+ 2*0.4'Q= 6 + 0.8°Q
• The profit-maximizing level of output for this monopolist is QM = 40.87, the monopolist's price is PM= $116.35, and the monopolist earns profit of $3780.9.
• Consumer surplus under monopoly is CSM = $1586.8.
(a) What is producer surplus under monopoly?
(Round to one decimal place.)
PSM
(b) What is the total welfare for this market under monopoly?
TWM =
(Round to one decimal place.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa7acc2cc-d74e-49d3-b5f3-209741f49b0b%2F03bdc9be-2e34-448b-bb15-916280c922d5%2Ft14ajk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:•A monopoly has long run total cost given by: TC = 61 + 6'Q + 0.4°a?, where Q represents the units of output.
• The market demand is given by: P = 194 - 1.90.
• The monopolist's marginal revenue and marginal cost functions are: MR(Q) = 194 - 2'1.9°Q = 194 - 3.8*Q and MC(Q) = 6+ 2*0.4'Q= 6 + 0.8°Q
• The profit-maximizing level of output for this monopolist is QM = 40.87, the monopolist's price is PM= $116.35, and the monopolist earns profit of $3780.9.
• Consumer surplus under monopoly is CSM = $1586.8.
(a) What is producer surplus under monopoly?
(Round to one decimal place.)
PSM
(b) What is the total welfare for this market under monopoly?
TWM =
(Round to one decimal place.)
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