Graphical description of dead weight loss of monopolist

Reference no: EM1315300

Illustrate in the graph below the deadweight loss (DWL) that would result if this monopolist were allowed to operate as a profit maximizing firm without regulation. If regulated, the monopolist has to behave like a competitive firm.

I already drew the demand curve and labelled it D.

Draw the marginal cost curve and label it as MC.
Locate the price and quantity the monopolist will set WITHOUT regulation and label it as Pm and Qm.
Locate the price and quantity the monopolist will set UNDER regulation and label it as Pc and Qc.

Shade the area that represents DWL.

Reference no: EM1315300

Questions Cloud

The congestion fee was raised : The congestion fee was raised to £8 in July 2005. Illustrate the new equilibrium point on your graph also assuming new charge is now optimally set.

A 40.0 kg girl decide to play "tug of war" on a surface : Use the simulation in the cannon interactive in this section to answer the following questions. (a) Does cannonball's horizontal velocity change as it moves through the air? (b) Does its vertical velocity change? (c) If you enhance the cannonball's h..

Finding expected shape of distribution of sample mean : Find out the expected shape of distribution of sample mean?

Estimating 99 percent confidence interval : Develop a 99 percent confidence interval for the population proportion.

Graphical description of dead weight loss of monopolist : Illustrate in the graph below the deadweight loss (DWL) that would result if this monopolist were allowed to operate as a profit maximizing firm without regulation.

Good weather which improves crop production : Unusually good weather which improves crop production also a major oil discovery are examples of unexpected supply shocks in the economy

What is the tension in the rope : Two blocks are connected by a string. The smooth inclined surface makes an angle of 35 degrees with the horizontal, and the block on the incline has a mass of 5.70 kg. The mass of the hanging block is m= 2.90 kg. Find the direction of the hanging blo..

Determining percentages of calls which are completed : Fix-It Copiers advertises mean time of 100 minutes for office calls with standard deviation of 25 minutes. What percentages of calls are completed?

Influences affecting foreign exchange rates : Elucidate how absolute also comparative advantages were used in your simulation. Elucidate the influences affecting foreign exchange rates.

User Account

All Pages