Sara is a single-price, profit-maximizing monopolist who sells her own patented perfume (shown in the graph below). a. What is the equilibrium price and quantity under monopoly conditions? b. If instead Sara had to operate like a competitive firm, what would be the equilibrium price and quantity? c. What is the deadweight loss and total loss to consumer surplus when Sara operates as a monopoly?
Sara is a single-price, profit-maximizing monopolist who sells her own patented perfume (shown in the graph below). a. What is the equilibrium price and quantity under monopoly conditions? b. If instead Sara had to operate like a competitive firm, what would be the equilibrium price and quantity? c. What is the deadweight loss and total loss to consumer surplus when Sara operates as a monopoly?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Sara is a single-price, profit-maximizing monopolist who sells her own patented perfume (shown in the graph below).
a. What is the equilibrium price and quantity under monopoly conditions?
b. If instead Sara had to operate like a competitive firm, what would be the equilibrium price and quantity?
c. What is the deadweight loss and total loss to consumer surplus when Sara operates as a monopoly?
d. How much surplus would Sara have if she could act as a perfectly price-discriminating monopolist?
![$ per ounce
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Transcribed Image Text:$ per ounce
60
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