Determining the deadweight loss

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Reference no: EM132254464

Deadweight Loss-

Given the following information:

Qs = 2P

P = Qs/2

QD= 180 - 4P

P = (QD -180)/-4 

AR = P = 45-.25Q

TR = 45 - .25Q2

Hint: MC - supply curve       

 MR = 45 - 5Q  

Qs = supply

Qd = demand

A)    Using the above information,

1) Graph and calculate the price-output solution under competitive market assumptions.

2) How much is the

-consumer surplus

-producer surplus and

-total surplus?

B) Calculate the price and the quantity demanded and supplied if the market is run by a profit maximizing monopoly

C) What is the deadweight loss if the market is run as a profit maximizing monopoly?

D) How much producer surplus is there if the market is operated as a monopoly?

Reference no: EM132254464

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