A monopolist faces two demand curves in two separate markets. The Market Demand in the first market is P₁=100-Q₁ and in the second market it is P₂=50-0.5Q₂. The marginal & average costs are constant at 10 (MC=AC=10). Find the Monopoly Price and Quantity in each market. Find the Perfect Competition Price and Quantity in each market. Calculate Profit, Social Welfare (Consumer and Producer Surpluses), and Dead Weight Loss in both situations and in both markets.
A monopolist faces two demand curves in two separate markets. The Market Demand in the first market is P₁=100-Q₁ and in the second market it is P₂=50-0.5Q₂. The marginal & average costs are constant at 10 (MC=AC=10). Find the Monopoly Price and Quantity in each market. Find the Perfect Competition Price and Quantity in each market. Calculate Profit, Social Welfare (Consumer and Producer Surpluses), and Dead Weight Loss in both situations and in both markets.
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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Transcribed Image Text:A monopolist faces two demand curves in two separate markets. The Market Demand in
the first market is P₁=100-Q₁ and in the second market it is P₂=50-0.5Q₂. The marginal &
average costs are constant at 10 (MC=AC=10). Find the Monopoly Price and Quantity in
each market. Find the Perfect Competition Price and Quantity in each market. Calculate
Profit, Social Welfare (Consumer and Producer Surpluses), and Dead Weight Loss in
both situations and in both markets.
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