$55 $50 $45 $40 $35 $30 $25 $20 -- $15 $10 $5 MIL 12345678 9 10 11 units Quantity Tools A THAL Instructions: In parts a and b, enter your answers as a whole number in parts c-e, round your answers to two decimal places a. What is the profit-maximizing level of output? CS b. What price will the monopolist charge to maximize profits? $ c. Determine the efficiency costs (deadweight loss) of monopoly output/pricing Instructions: Use the tool provided 'DWL to illustrate this area on the graph Drag the points to move or resize What is the efficiency cost (deedweight loss) of monopoly output/pricing? S Save & Exit

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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5
int
ences
$55
$50
$45
$40
$35
$30
$25
$20
$15
$10
$5
0
N
MR
units
MC
Quantity
D
4 5 6 7 8 9 10 11
Tools
DWL
Instructions: In parts a and b, enter your answers as a whole number. In parts c-e, round your answers to two decimal places.
a. What is the profit-maximizing level of output?
b. What price will the monopolist charge to maximize profits?
$
CS
c. Determine the efficiency costs (deadweight loss) of monopoly output/pricing.
Instructions: Use the tool provided 'DWL' to illustrate this area on the graph. Drag the points to move or resize.
What is the efficiency cost (deadweight loss) of monopoly output/pricing?
d. Determine the consumer surplus under monopoly output/pricing.
Help Save & Exit
Submit
Transcribed Image Text:5 int ences $55 $50 $45 $40 $35 $30 $25 $20 $15 $10 $5 0 N MR units MC Quantity D 4 5 6 7 8 9 10 11 Tools DWL Instructions: In parts a and b, enter your answers as a whole number. In parts c-e, round your answers to two decimal places. a. What is the profit-maximizing level of output? b. What price will the monopolist charge to maximize profits? $ CS c. Determine the efficiency costs (deadweight loss) of monopoly output/pricing. Instructions: Use the tool provided 'DWL' to illustrate this area on the graph. Drag the points to move or resize. What is the efficiency cost (deadweight loss) of monopoly output/pricing? d. Determine the consumer surplus under monopoly output/pricing. Help Save & Exit Submit
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