Monopoly with linear demand curve

Assignment Help Business Economics

Reference no: EM131091950

Draw an example of a monopoly with a linear demand curve and a constant marginal cost curve.

a. Show the profit-maximizing price and output, p* and Q*, and identify the areas of consumer surplus, producer surplus, and deadweight loss. Also show the quantity, QC, that would be produced if the monopoly were to act like a price taker.

b. How would your answer in part a. change if the demand curve is a smooth convex-to-the-origin curve (that hits both axes) that is tangent to the original demand curve at the point (Q*,p*)?

Reference no: EM131091950

Questions Cloud

Green mountain adopt in order to expand : 1. What marketing approaches could Green Mountain adopt in order to expand its customer base? 2. How do international and domestic events affect Green Mountain's marketing strategy and sales? 3. How successful would Green Mountain be in South America..

Production possibility frontier for simple two-good : Consider the production possibility frontier for a simple two-good (closed) economy. Quantities of good x produced are plotted on the horizontal axis. Quantities of good y produced are plotted on the vertical axis. Suppose that the production of both..

Single greatest strength and weakness : People:Consider one of the following areas: skills, knowledge, capabilities, impact on others both inside and outside the company, or other (be specific).

Monopoly with linear demand curve : Draw an example of a monopoly with a linear demand curve and a constant marginal cost curve. Show the profit-maximizing price and output, p* and Q*, and identify the areas of consumer surplus, producer surplus, and deadweight loss. Also show the quan..

Community health-public health provider : Compile key findings from the interview, including the interview questions used, and submit with the group presentation. 2-Summary of interview with community health/public health provider.

Suppose firm in competitive market produces and sells : Suppose a firm in a competitive market produces and sells 150 units of output and earns $1,800 in total revenue from the sales. If the firm increases its output to 200 units, total revenue will be

Short-run aggregate supply and aggregate demand diagram : Start by drawing the Short-Run Aggregate Supply and Aggregate Demand diagram with short-run equilibrium at Price Level = 165 and real GDP = 2750. Next, the following shock hits the economy: There is a sudden rise in household wealth as the stock mark..

What would a buddhist do in this situation : In your assignment address each of the following points. What would a utilitarian do in this situation? Why? What would a Buddhist do in this situation? Why?

User Account

All Pages