2.5 The following diagram illustrates the demand curve facing a monopoly in an industry with no economies or disecono- mies of scale and no fixed costs. In the short and long run, ATC. Copy the diagram and indicate the following: MC %3D $ bontint boi co MC = ATC cn D Lfor Output, Q a. Optimal output b. Optimal price c. Total revenue d. Total cost e. Total monopoly profits f. Total "excess burden" or "welfare costs" of the monopoly (briefly explain)
2.5 The following diagram illustrates the demand curve facing a monopoly in an industry with no economies or disecono- mies of scale and no fixed costs. In the short and long run, ATC. Copy the diagram and indicate the following: MC %3D $ bontint boi co MC = ATC cn D Lfor Output, Q a. Optimal output b. Optimal price c. Total revenue d. Total cost e. Total monopoly profits f. Total "excess burden" or "welfare costs" of the monopoly (briefly explain)
Chapter9: Monopoly
Section: Chapter Questions
Problem 2.3P
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