cesSerena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and marginal costcurves 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 lostfrom 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 SummaryInstructionsToolsLoss←Total economic surplus lost: $per day.Price (dollars/ounce)302520GAUG101545403565605550Serena's Profit MaximizationD481216202428Quantity (ounces/day)b. How much total surplus would result if Serena could act as a perfectly price-discriminating monopolist?MCNext

a. Total economic surplus lost: $40The socially optimal quantity and price occur at the intersection…

Answered: ces Serena is a single-price,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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O OO The above graph shows the market demand function for a product. Assume that the market is served by a perfectly-price-discriminating monopolist with a constant marginal cost of production equal to $4 (MC = $4) and no fixed cost (FC = 0). The deadweight loss equals: DWL - $72 DWL - $0 DWL- -$48 DWL - $84 DWL-$36 $30 $28 $26 $24 $22 $20 Question 23 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
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Serena is profit-maximizing monopolist selling of her own patented perfume, whose demand and marginal cost curves are as shown. 1. Serena is profit-maximizing monopolist selling of her own patented perfume, whose demand and marginal cost curves are as shown. Relative to the consumer surplus that would result at the perfectly competitive quantity and price, how much consumer surplus is lost from her selling at the monopolist's profit-maximizing quantity and price? $ per ounce 60 50 45 40 30 20 15 10 0 468 12 16 Ounces/day MC 24 2. In the first problem, how much total surplus would Serena have made if she acted as a perfectly price-discriminating monopolist? Show your work. 3. Explain the difference between the demand curve faced by a perfectly competitive firm and the demand curve faced by a monopoly. Draw both curves and explain why they are different. How do these demand curves cause marginal revenue to differ across the two types of firm? 4. Explain the incentives created by…
What is the quantity that maximizes social surplus? Explain. How much worse off is society as a result of this industry being monopolized? Show this on a graph and calculate the amount. Info needed in image below
6. The following graph shows the demand, marginal revenue, and marginal cost curves for a single-price monopolist that produces a drug that helps relieve arthritis pain.
What quantity will the above monopolist produce if it can first degree price discriminate? (Enter a number) How much consumer surplus do consumers get in the above graph if the monopolist first degree price discriminates? (Enter a number) If the monopolist first degree price discriminates, will the quantity produced by the monopolist be allocatively efficient? (Enter: YES or NO)
1. Refer to the figure below when the firm is a monopolist. Price P MC L K J ATC D T W Quaxtity \MR a) If the monopolist maximizes profit, how many units will it produce? b) What price will the monopolist charge? c) What area measure the monopolist's profit? d) What level of output would be socially efficient? 2. A Monopolist is facing a demand schedule that is shown in the following table. Quantity Total Revenue Average Revenue Marginal Revenue Price $35 $32 1 2 3 $29 14 $26 15 $23 $20 $17 $14 6 7 18 19 $11 10 $8 a) Fill out the rest of the table. b) Assume this monopolist's marginal cost is constant at $11. What quantity of output (Q) will it produce and what price (P) will it charge? ------
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Give typing answer with explanation and conclusion Suppose that a monopolist whose marginal cost curve is MC(Q)=Q faces the demand curve P=10-2Q. What is monopolist's profit-maximizing quantity, profit-maximizing price, the total surplus (under monopoly profit maximization), also called the "monopoly market surplus," and if the monopolist can perfectly price discriminate, then deadweight loss equals...?
Please refer to the figure provided. Imagine that this market could be perfectly competitive, controlled by a monopolist who charges a single price or a monopolist who charges each customer a different price 1. How much is producer surplus if the market is controlled by a single-price monopolist? $ 2. Suppose now the monopolist is able to charge all customers the maximum price they are willing to pay, how much is the producer surplus?
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Assume the graph represents the market for a monopolist. What quantity will the monopolist produce, and what price will she charge? What will her total revenue, costs, and profit be at this level of production? What will the deadweight loss for society be at this level of production? (Assume the MC curve is a straight line between the relevant points for this calculation.)

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