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Question-2 (Monopoly) A monopolist has an inverse demand curve given by p(y): 12 – y and a cost curve given by c(y) = 3y. = 1. Find the marginal revenue and marginal cost functions. 2. Find the optimal price and quantity for the monopolist. 3. Find the optimal price and quantity if the market is competitive. Note that in the competitive market firm produce where MC-AC. 1. Calculate the consumers surplus and deadweight loss of due to monopoly.

Question-2 (Monopoly) A monopolist has an inverse demand curve given by p(y): 12 – y and a cost curve given by c(y) = 3y. = 1. Find the marginal revenue and marginal cost functions. 2. Find the optimal price and quantity for the monopolist. 3. Find the optimal price and quantity if the market is competitive. Note that in the competitive market firm produce where MC-AC. 1. Calculate the consumers surplus and deadweight loss of due to monopoly.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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 A monopolist has an inverse demand curve given by p(y) =12 − y and a cost curve given by c(y) = 3y.

1. Find the marginal revenue and marginal cost functions.
2. Find the optimal price and quantity for the monopolist.
3. Find the optimal price and quantity if the market is competitive. Note that in the competitive market firm produce where MC=AC.
4. Calculate the consumers surplus and deadweight loss of due to monopoly

 

 

I need all four parts answered. I would prefer a diagram to accompany part 4.

Question-2 (Monopoly) A monopolist has an inverse demand curve given by p(y): 12 – y and a cost curve given by c(y) = 3y. = 1. Find the marginal revenue and marginal cost functions. 2. Find the optimal price and quantity for the monopolist. 3. Find the optimal price and quantity if the market is competitive. Note that in the competitive market firm produce where MC-AC. 1. Calculate the consumers surplus and deadweight loss of due to monopoly.
Transcribed Image Text:Question-2 (Monopoly) A monopolist has an inverse demand curve given by p(y): 12 – y and a cost curve given by c(y) = 3y. = 1. Find the marginal revenue and marginal cost functions. 2. Find the optimal price and quantity for the monopolist. 3. Find the optimal price and quantity if the market is competitive. Note that in the competitive market firm produce where MC-AC. 1. Calculate the consumers surplus and deadweight loss of due to monopoly.
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