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A monopolist faces a demand given by p = 30 – 3y. Its cost function is c (y) = 3y^2 + 6y
a) What is the optimal level of output for a monopolist?
b) What is a monopolist price?
c) What is the total profit (or loss)?
d) Show answers to (a), (b), and (c) on a graph that includes demand, MR, and MC
e) Calculate the dead weight loss because of inefficiency of exercising monopoly power?
Assume you are currently working in a government job that pays$20,000/year and you have $40,000 in an account earning 10% interest. You have the opportunity to buy a fruit orchardthat produces $23,000/year in revenue for a price of $50,000.
Why is it often difficult to develop a realistic analysis?
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The output level at which the aggregate demand curve intersects the aggregate supply is Saving zero. Macro equilibrium is achieved. Full employment is sustainable. Micro equilibrium is achieve
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