Assume that a monopoly is constrained to charging the same price for each unit it sells, and assumption BIG holds. It faces a demand curve equal to MWTP(Q) = 160 - 0.5Q, and MC(Q) = 60. What is the monopoly's producer surplus if a regulator directs it to sell the efficient quantity? Round to two decimal places, do not include a currency symbol, and enter the negative sign if the answer is negative. If your answer is -$1.275, enter -1.28.

Assume that a monopoly is constrained to charging the same price for each unit it sells, and assumption BIG holds. It faces a demand curve equal to MWTP(Q) = 160 - 0.5Q, and MC(Q) = 60. What is the monopoly's producer surplus if a regulator directs it to sell the efficient quantity? Round to two decimal places, do not include a currency symbol, and enter the negative sign if the answer is negative. If your answer is -$1.275, enter -1.28.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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