Suppose a monopolist faces consumer demand given by P=400 - 20 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost assume the ferm has no fed costa). If the monopoly can only charge a single price, then it will eam profits of SEnter your response rounded as a whole number) Corespondingly, consumer surplus is $ However, f the fem were to practice price discrimination such that consumer surplus becomes profit then, holding output constant at 90, the monopoly would have profits of $

Suppose a monopolist faces consumer demand given by P=400 - 20 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost assume the ferm has no fed costa). If the monopoly can only charge a single price, then it will eam profits of SEnter your response rounded as a whole number) Corespondingly, consumer surplus is $ However, f the fem were to practice price discrimination such that consumer surplus becomes profit then, holding output constant at 90, the monopoly would have profits of $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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ASAP Suppose the market for kiwis has a demand curve of the form: Qd = 200-2Pd And that the costs of the monopoly producer of kiwis are determined by Total Cost (Q) = Variable Cost (Q) + Fixed Cost. C (Q) = Q² + 100. That is, its marginal cost will be: MgC (Qs) = 2Qs = Ps A. If the Government regulates this monopoly so that it does not generate welfare losses, how much should the maximum price to impose be? B. If the Government decides to grant a subsidy to reach the amount of the social optimum, would it stop having a loss of welfare? C. Bonus How much the subsidy should be for each unit so that the amount is reached in the social optimum.
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Which area represents the producer surplus?
Could I have help I’m struggling to remember how to find these values and can’t seem to graph
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