What is the deadweight loss (DWL) from the monopoly below? P 16 15 14 13 12 11 4321 0 0 0 0 0 50 30 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 60 120 MR 20 S=MC D Q
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- ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry were weakened?What is the usual shape of a total revenue curve for a monopolist? Why?=b10| || || phphattempt 631066&cmid=55726&page-31 $25 4 aaa $5 S Select one Ob $50 O $500 04 $1,000 888 The diagram above shows the demand and cost curves for a market that could either be a monopoly or perfectly competitive in Long Fun Equilibrium the market a onopoly Deadweight Loss DWL) would be R F % 5 V T 200 300 400 500 600 Output 10) G M 6 B MacBook Air PR LAATC LMC Y Demand P H &7 U N 8 61 M W DI K GTE " O 1 Next 0 V L
- What is the DWL from the monopoly depicted below? 40 36 32 28 24 16 12 8 222220 4 Demand 250 500 750 1000 1250 1500 1750 2000 2250 250 MR 7500 8000 12000 12500400.00 300.00 200.00 100.00 0.00 2.5 -100.00 -200.00 -300.00 -E(ys)E(YR) -E(NS) E(NR) E(YS) 100-100i E(YR)=100-50i E(IIS) -20 +100i E(IIR)= -70 +50i Assuming we are under monopoly and asymmetric information, what is the highest interest for which both types (safe and risky) stay in the market? Oi-2 Oi-0.5 O i-1 Oi-3 0 Objective functions 0.5 3.5PRICE (Cents per Kilovatt-hour) 9 38 2227222 32 m 4 D 1 MR 2 5 8 3 4 7 QUANTITY (Thousands of kilowatt-hours) 8 ATC MC 9 10 D + Monopoly Outcome Which of the following statements are true about this natural monopoly? Check all that apply. The electricity company is experiencing diseconomies of scale. The electricity company is experiencing economies of scale. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The electricity company must own a scarce resource.
- PRICE (Dollars per gigabyte of data) 20 18 16 14 0 0 2 MR 5 QUANTITY (Gigabytes of data) 6 O True False 8 ATC MC 9 10 D + Which of the following statements are true about this natural monopoly? Check all that apply. Monopoly Outcome It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The 5G LTE company is experiencing diseconomies of scale. The 5G LTE company is experiencing economies of scale. In order for a monopoly to exist in this case, the government must have intervened and created it. True or False: Without government regulation, natural monopolies never earn zero profit in the long run.10 8 7 5678 Price = 10, Quantity = 5 Price = 3, Quantity = 5 MC Price = 8, Quantity = 7 Q If the monopolist depicted in the above figure is maximizing profits, the correct price/output combination will be: Price = 6, Quantity = 6 ATC Da. What is the monopolist's profit-maximizing output and price? Output: Price: $ b. What will be the monopolist's total profit?
- The graph shown represents the cost and revenue curves faced by a monopoly 18 876543N-OOO7SSAMNI 17 16 15 14 S 13 12 11 10 9 2 1 MC ATC X MR %70%85% -% 90 A. II only B. I and III C. I only D. II and III only 100 110 Which of the following statements is true? . The monopolist's profit maximizing price is $12. 2. The monopolist's profit maximizing quantity is 100. . The monopolist will earn zero profits. 120 130 140 150 160 170 D QuantityA monopolist practices perfect price discrimination. The monopoly faces a market demand curve and has a total cost of production given below: P=50-Q and TC = 20Q %3D What do economic profits equal for this perfect price discriminating monopolist? * 600 1050 450Question What is the DWL from the monopoly depicted below? 40 36 32 28. 24 20 20 16 12 8 4 250 7500 MO ATC Demand 500 750 1000 1250 1500 1750 2000 2250 250 MR 8000 12000 12500