Suppose that a monopolist's market demand is given by P = 100 - 2Q and that marginal cost isgiven by MC = Q/2, while the marginal revenue is MR = 100 – 4Q. Assume the firm has nofixed costs.a) Calculate the profit-maximizing monopoly price and quantity.b) Calculate the price and quantity that arise under perfect competition with a supplycurve P = Q/2.c) Compare consumer and producer surplus under monopoly versus perfectly competitivepricing. What is the deadweight loss due to monopoly?d) Explain in a sentence or two what the deadweight loss represents in terms ofconsumers' willingness to pay compared to the cost of production.

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Answered: Suppose that a monopolist's market…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that the industry demand curve is given by P = 200 - Q and an incumbent monopolist faces the following total cost function: T CI = 50qI and potential entrants face the following cost function: T CE = 60qE. a. What is the limit price in this market? b. If the monopolist charged its profit-maximizing price, what would its profits equal? c. If the monopolist charged the limit price, what would its profits equal? Please write detailed answers, thanks a lot.
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Q,)Assume a monopoly market characterized by the following: P = 10 – 1.5Q (demand curve) MC = 2 + Q (marginal cost curve) Find the monopolist’s equilibrium price and quantity consistent with profit maximization
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= 240 + 0.5Q², and face 4. A monopolist has the cost function TC(Q) market demand P = 45 – Q. (a) Find the monopoly equilibrium price and output. Find the monopolist's profit.
Please solve 1.4 this is my homework

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