opportunity in tutoring her fellow students before each knowledge of economics eliminates any risk of competition and that her marginal cost is constant for the relevant output range, specify Cynthia's profit-maximizing price and quantity of tutoring hours she should provide. Instructions: In the graph below, use the demand curve provided to draw the correct marginal revenue curve 'MR. Identify the profit-maximizing price and quantity using the point tool 'A', and shade the area of economic surplus lost due to her selling at this price using the toll labelled 'loss" Price ($/hour) The Tutoring Market for a monopolist 15 20 25 30 35 40 Quantity (hours) reset MC D 50 55 MR 7 Loss The efficient quantity is 225 hours. Dead Weight Loss caused by restricting quanity as indicated in the graph is $75 The amount of consumer surplus with a profit-maximizing monopolist is $ compared to $ at the efficient quantity. The amount of producer surplus with a profit-maximizing monopolist is $[ compared to $ at the efficient quantity.

opportunity in tutoring her fellow students before each knowledge of economics eliminates any risk of competition and that her marginal cost is constant for the relevant output range, specify Cynthia's profit-maximizing price and quantity of tutoring hours she should provide. Instructions: In the graph below, use the demand curve provided to draw the correct marginal revenue curve 'MR. Identify the profit-maximizing price and quantity using the point tool 'A', and shade the area of economic surplus lost due to her selling at this price using the toll labelled 'loss" Price ($/hour) The Tutoring Market for a monopolist 15 20 25 30 35 40 Quantity (hours) reset MC D 50 55 MR 7 Loss The efficient quantity is 225 hours. Dead Weight Loss caused by restricting quanity as indicated in the graph is $75 The amount of consumer surplus with a profit-maximizing monopolist is $ compared to $ at the efficient quantity. The amount of producer surplus with a profit-maximizing monopolist is $[ compared to $ at the efficient quantity.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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