The diagram below shows the demand, marginal revenue, and marginal cost of a monopolist. 120- $ 110- 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0 0 1 2 3 16 4 5 Profit-maximizing output: Profit-maximizing price: $ units MR 6 MC 7 8 a. What price and output would prevail if this firm's product was sold by price-taking firms in a perfectly competitive market? 9 Quantity D 10 11 (11, 0) 14 15 9 5 units b. Determine the profit-maximizing output and price for the monoplist. Price: $ 68 Output: c. Calculate the deadweight loss of this monopoly. $
The diagram below shows the demand, marginal revenue, and marginal cost of a monopolist. 120- $ 110- 100- 90- 80- 70- 60- 50- 40- 30- 20- 10- 0 0 1 2 3 16 4 5 Profit-maximizing output: Profit-maximizing price: $ units MR 6 MC 7 8 a. What price and output would prevail if this firm's product was sold by price-taking firms in a perfectly competitive market? 9 Quantity D 10 11 (11, 0) 14 15 9 5 units b. Determine the profit-maximizing output and price for the monoplist. Price: $ 68 Output: c. Calculate the deadweight loss of this monopoly. $
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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