ces Serena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and marginal cost curves are as shown below. a. Relative to the economic surplus that would result at the socially optimal quantity and price, how much economic surplus is lost from her selling at the monopolist's profit-maximizing quantity and price? Instructions: In the graph, indicate the area that represents the reduction in total economic surplus. Graph Summary Instructions Tools Loss ← Total economic surplus lost: $ per day. Price (dollars/ounce) 30 25 20 GAUG 10 15 45 40 35 65 60 55 50 Serena's Profit Maximization D 4 8 12 16 20 24 28 Quantity (ounces/day) b. How much total surplus would result if Serena could act as a perfectly price-discriminating monopolist? MC Next
ces Serena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and marginal cost curves are as shown below. a. Relative to the economic surplus that would result at the socially optimal quantity and price, how much economic surplus is lost from her selling at the monopolist's profit-maximizing quantity and price? Instructions: In the graph, indicate the area that represents the reduction in total economic surplus. Graph Summary Instructions Tools Loss ← Total economic surplus lost: $ per day. Price (dollars/ounce) 30 25 20 GAUG 10 15 45 40 35 65 60 55 50 Serena's Profit Maximization D 4 8 12 16 20 24 28 Quantity (ounces/day) b. How much total surplus would result if Serena could act as a perfectly price-discriminating monopolist? MC Next
Micro Economics For Today
10th Edition
ISBN:9781337613064
Author:Tucker, Irvin B.
Publisher:Tucker, Irvin B.
Chapter9: Monopoly
Section: Chapter Questions
Problem 7SQP
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Question
Transcribed Image Text:ces
Serena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and marginal cost
curves are as shown below.
a. Relative to the economic surplus that would result at the socially optimal quantity and price, how much economic surplus is lost
from her selling at the monopolist's profit-maximizing quantity and price?
Instructions: In the graph, indicate the area that represents the reduction in total economic surplus.
Graph Summary
Instructions
Tools
Loss
←
Total economic surplus lost: $
per day.
Price (dollars/ounce)
30
25
20
GAUG
10
15
45
40
35
65
60
55
50
Serena's Profit Maximization
D
4
8
12
16
20
24
28
Quantity (ounces/day)
b. How much total surplus would result if Serena could act as a perfectly price-discriminating monopolist?
MC
Next
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