What is the deadweight loss due to monopoly now

Assignment Help Econometrics

Reference no: EM131248363

Suppose that a monopolist's market demand is given by P = 100 - 2Q and that marginal cost is given by MC = Q/2.

a) Calculate the profit-maximizing monopoly price and quantity.

b) Calculate the price and quantity that arise under perfect competition with a supply curve P = Q/2.

c) Compare consumer and producer surplus under monopoly versus marginal cost pricing. What is the deadweight loss due to monopoly?

d) Suppose market demand is given by P = 180 - 4Q. What is the deadweight loss due to monopoly now?

Explain why this deadweight loss differs from that in part (c)

Reference no: EM131248363

Questions Cloud

Beyond the pearson tutorial : There are no additional readings for this assignment, beyond the Pearson tutorial and the three textbook readings. However, some of the concepts in this module are tough, so make sure to read the materials carefully before starting on this assignm..

What is the mass of helium in the system : APSC 182 Heat Transfer - What is the final temperature and what is the mass of helium in the system? The molar mass of He is MHe = 4.00 g/mol.

What price would firm choose if it wishes to maximize profit : A firm has a monopoly in the production of a software application in Europe. The demand schedule in Europe is Q1 = 120 - P, where Q1 is the amount sold in Europe when the price is P.

Compute the annual return you realized from this bond : Suppose you bought a $1,000 par bond, 7% annual coupon payment with 5 years maturity when the market interest rate is 8%. After 1 year and immediately after you received the coupon payment you decided to sell the bond when the market interest rate..

What is the deadweight loss due to monopoly now : Compare consumer and producer surplus under monopoly versus marginal cost pricing. What is the deadweight loss due to monopoly?

Value of the franc decrease : What you can do to hedge your bet. Analyze steps you will take to avoid losing all your money should the value of the franc decrease.

Discuss ways in which deforestation is being addressed : The harmful effects of deforestation can reduce biodiversity and the ecological services provided by forests on a global scale. Characteristics of deforestation include acceleration of flooding in surrounding areas, regional climate change from ex..

What price will the profit-maximizing monopolist set : The demand curve for a certain good is P = 100 - Q. The marginal cost for a monopolist is MC(Q) = Q, for Q ≤ 30. The maximum that can be supplied in this market is Q = 30, that is, the marginal cost is infinite for Q > 30.

What is the deadweight loss due to monopsony in this market : Calculate the monopsonist's optimal quantity of labor. What wage rate must the monopsonist pay to attract this quantity of labor?

User Account

All Pages