The total economic profit made by the monopoly would bethe area described by the points..MCBPatPatATCP2tMRQ. Q2QuantityP3_P4 B_DO P1 P4 B_CO P4_B_Q1P2_P4_B_AO P1_P2_A_CPriceE. Priceprivate+socialcost3327private costIA2115demand183042QuantityThe current market equilibrium without any government intervention is at D. If the governmentwanted to solve the externality in this market, it could do so withnone of these optionsan $8 per unit taxO a $4 per unit taxan $8 per unit subsidya $4 per unit subsidy

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The total economic profit made by the monopoly would be the area described by the points.. MC Pat ATC Pat P Price E.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The total economic profit made by the monopoly would be
the area described by the points..
MC
B
Pat
Pat
ATC
P2t
MR
Q. Q2
Quantity
P3_P4 B_D
O P1 P4 B_C
O P4_B_Q1
P2_P4_B_A
O P1_P2_A_C
Price
E.

Price
private+social
cost
33
27
private cost
IA
21
15
demand
18
30
42
Quantity
The current market equilibrium without any government intervention is at D. If the government
wanted to solve the externality in this market, it could do so with
none of these options
an $8 per unit tax
O a $4 per unit tax
an $8 per unit subsidy
a $4 per unit subsidy

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