*You only need to answer question f* d. Calculate the monopoly firm's optimal price and quantity using the given functions.A monopoly firm holding a patent right faces a market demand given in the table. We assumethere is no fixed costs and the monopolist maximizes profit.1.e. Show CS, PS, and DWL on your graph in part c. Calculate the exact size of CS, PS,TS, and DWL. (Fill in the blanks in part h.)ATCa. Fill in the blanks. [Hint: MR = 4TRMC =AQAQYou may want to construct columns for AQATR, and ATC to find MR and MC.]f. Now the monopolist decides to conduct the perfect price discrimination. That means,the monopolist charges each consumer exactly his or her willingness to pay. Draw thesame graph as in part c, show CS, PS, and DWL on your graph and calculate the exactsize of CS, PS, TS, and DWL in this situation. (Fill in the blanks in part h.)PQTRMRTCMCProfit20306001624083601840320g. After the patent right run out, many firms enter the market and sell identical products1650400in the market. Now the market is assumed to be perfectly competitive. (Fill in the blanksin part h.) In the long-run, what will be the market price and firms' profit? Brieflyexplain why. [Hint: Use the fact that ATC is always 8 in this case.]14604801270560b. From the table above, what is the price the monopoly firm would choose?h. Find the size of CS, PS, TS, and DWL from part e, part f, and part g. Fill in the blanks.From now on, we will use the function forms of the previous table:поwMonopoly(Part e)Monopoly withprice discrimination(Part f)Perfect Competition(Part g)Demand: P = 26 -Marginal Revenue: MR = 26 -QCSMarginal Cost: MC = 8PSc. Draw demand, MR and MC curves on the same graph. (Note: This question does notTSDWLcarry any points, because the graph is drawn for you as below. You can use it directlyto answer the following questions.)Question: According to the table above, is the market outcome efficient when thePmonopolist conducts the perfect price discrimination? If so, explain why.268MCMRQ

Producer surplus is the total amount that a producer gets for selling a quantity of a good at the…

Now the monopolist decides to conduct the perfect price discrimination. That means, the monopolist charges each consumer exactly his or her willingness to pay. Draw the same graph as in part c, show CS, PS, and DWL on your graph and calculate the exact

Now the monopolist decides to conduct the perfect price discrimination. That means, the monopolist charges each consumer exactly his or her willingness to pay. Draw the same graph as in part c, show CS, PS, and DWL on your graph and calculate the exact

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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