What is the quantity that maximizes social surplus? Explain. How much worse off is society as a result of this industry being monopolized? Show this on a graph and calculate the amount. Info needed in image below
What is the quantity that maximizes social surplus? Explain. How much worse off is society as a result of this industry being monopolized? Show this on a graph and calculate the amount. Info needed in image below
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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What is the quantity that maximizes social surplus? Explain. How much worse off is society as a result of this industry being monopolized? Show this on a graph and calculate the amount. Info needed in image below

Transcribed Image Text:Question #4: Below are the demand and cost schedules for Rogaine (a drug used to treat male
baldness). Assume that the drug company has a monopoly on selling Rogaine.
TR
MR
TC =
MC
Quantity
Demanded
Marginal
Total
Marginal
Cost
Price
Total
Revenue
Revenue
Cost
70
100
--
--
1
65
65
65
105
2
60
(i)
55
108
3
3
55
165
45
114
(iv)
4
50
200
(ii)
123
9.
45
225
25
(iii)
12
6.
40
240
15
150
15
7
35
245
168
18
30
240
-5
189
21
9
25
225
-15
214
25
10
20
200
-25
243
29
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