Microeconomics Unit 4 Practice Sheet Riya Price Part 1: Monopoly- Use the graph of a non-price discriminating monopoly to answer the following questions. Show your work when asked to calculate. $160 $140 1. Identify the profit maximizing price and quantity. $120 MC 2. Calculate the total revenue at the profit $100 maximizing price and quantity. ATC $80 3. Calculate the total cost at the profit maximizing price and quantity. $60 4. Calculate the profit or loss at the profit maximizing price and quantity. $40 5. Calculate the area of deadweight loss. $20 6. Identify the socially optimal (allocatively efficient) price and quantity. 7. Identify the price and quantity where the total revenue is maximized. MR 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Quantity 8. At the price of $120, is the demand relatively elastic, relatively inelastic, or unit elastic? Why? 9. Identify the price and quantity if this monopoly's fixed costs increase by $140. 10. Identify the profit maximizing price and quantity if the government levies a $30 per unit tax on this monopoly. 11. Identify the profit maximizing price and quantity if this monopoly figures out a way to perfectly price discriminate. 12. Assume instead that the costs of production changed for this monopoly so that the marginal cost (MC) and average total cost (ATC) for every unit was $80. Under these new circumstances, identify the profit maximizing price and quantity. 13. Calculate the new total revenue at the profit maximizing price and quantity. 14. Calculate the new total cost at the profit maximizing price and quantity. 15. Calculate the new profit or loss at the profit maximizing price and quantity. Copyright Jacob Clifford 2020. Ultimate Review Packet Microeconomics Unit 4 Practice Sheet Riya Price Part 1: Monopoly- Use the graph of a non-price discriminating monopoly to answer the following questions. Show your work when asked to calculate. $160 $140 1. Identify the profit maximizing price and quantity. $120 MC 2. Calculate the total revenue at the profit $100 maximizing price and quantity. ATC $80 3. Calculate the total cost at the profit maximizing price and quantity. $60 4. Calculate the profit or loss at the profit maximizing price and quantity. $40 5. Calculate the area of deadweight loss. $20 6. Identify the socially optimal MR D (allocatively efficient) price and quantity. 7. Identify the price and quantity where the total revenue is maximized. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Quantity 8. At the price of $120, is the demand relatively elastic, relatively inelastic, or unit elastic? Why? 9. Identify the price and quantity if this monopoly's fixed costs increase by $140. 10. Identify the profit maximizing price and quantity if the government levies a $30 per unit tax on this monopoly. 11. Identify the profit maximizing price and quantity if this monopoly figures out a way to perfectly price discriminate. 12. Assume instead that the costs of production changed for this monopoly so that the marginal cost (MC) and average total cost (ATC) for every unit was $80. Under these new circumstances, identify the profit maximizing price and quantity. 13. Calculate the new total revenue at the profit maximizing price and quantity. 14. Calculate the new total cost at the profit maximizing price and quantity. 15. Calculate the new profit or loss at the profit maximizing price and quantity. Copyright Jacob Clifford 2020. Ultimate Review Packet W