EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
7th Edition
ISBN: 8220103455312
Author: Mankiw
Publisher: Cengage Learning US
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Question
Chapter 24, Problem 5QCMC
To determine
Calculation of present worth of a dollar.
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The figure at right shows the demand line, marginal
revenue line, and cost curves for a single-price
monopolist. Now suppose the monopolist is able to
charge a different price on each different unit sold.
The profit-maximizing quantity for the monopolist is
(Round your response to the nearest whole number.)
The price charged for the last unit sold by this monopolist
is $ (Round your response to the nearest dollar.)
Price ($)
250
225-
200-
The monopolist's profit is $
the nearest dollar.)
(Round your response to
MC
175-
150
ATC
125-
100-
75-
50-
25-
0-
°-
0
20
40
60
MR
80 100 120 140 160 180 200
Quantity
The diagram shows a pharmaceutical firm's demand
curve and marginal cost curve for a new heart medication
for which the firm holds a 20-year patent on its
production.
At its profit-maximizing level of output, it will generate a
deadweight loss to society represented by what?
A. There is no deadweight loss generated.
B. Area H+I+J+K
OC. Area H+I
D. Area D + E
◇ E. It is not possible to determine with the
information provided.
(...)
0
Price
0
m
H
B GI
A
MR
MC
D
Outp
Consider the figure on the right. A single-price monopolist
will produce
○ A. 135 units and charge a price equal to $32.
B. 135 units and generate a deadweight loss.
OC. 189 units and charge a price equal to the
perfectly competitive price.
○ D. 189 units and charge a price equal to $45.
()
Dollars per Unit
$45
$32
MR
D
135 189
Output
MC
NG
Chapter 24 Solutions
EBK STUDY GUIDE FOR MANKIW'S PRINCIPLES
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