In order to maximize profits, a monopolist would choose to produce units which is less than the socially optimal quantity of units. Price 30 MC 23 20 15 ATC 12 10 6. D 9 12 15 \MR Quantity O A. 9; 12 О в. 12: 15 OC 9: 15 O D. 12; more than 15

In order to maximize profits, a monopolist would choose to produce units which is less than the socially optimal quantity of units. Price 30 MC 23 20 15 ATC 12 10 6. D 9 12 15 \MR Quantity O A. 9; 12 О в. 12: 15 OC 9: 15 O D. 12; more than 15

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

In order to maximize profits, a monopolist would choose to produce
units which is less than the socially optimal quantity of
units.
Price
30
MC
23
20
15
ATC
12
10
9 12
15
\MR
Quantity
O A. 9; 12
B. 12; 15
OC. 9: 15
O D. 12; maore than 15

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Please help
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Need answers to all these questions
E4 Suppose that the monopolist can produce with total cost: TC = 10Q. Assume that the monopolist sells its goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by Q1 = 120 - 4P1, and Q2. = 240 - 2P2. Suppose that consumers can mail the product from cheaper location to a more expensive location freely (mailing cost $0). What would be the monopolist profit? 3750,3500,5250,4000.
Cost & Figure 15 Revenue $10 per unit MC $9 $8 АТС $7 $6 $5 $4 $3 $2 $1 MR 2 3 4 7 8 10 Quantity (in thousands) Refer to the above Figure 15 which shows cost curves, a marginal revenue (MR) curve and a demand curve faced by a monopolist. If this monopolist is profit maximizing and does not price discriminate, it will produce ( Select ] v units of output and charge a price of [ Select ] per unit. Given its cost curves, we can tell that this monopolist is currently earning [ Select ] economic profit. According to the classical welfare economics, the socially efficient quantity to be produced in this market would be [ Select ] units of output and a socially efficient price would be [Select ] per unit.
Which area represents the producer surplus?
If both parts could be answered.