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The following figure describes the market demand curve of a monopoly market: Price, cost 10 9 S 7 6 5 4 3 2 a. b. 5 10 15 20 25 30 35 4 D a). 50 55 60 65 70 75 80 85 quantity Draw the marginal revenue (MR) curve for the monopoly given above market demand curve. If the monopoly firm can produce any output level with the ex cost $3 per unit, how would the marginal cost (MC) curve be? List mathematical equation and draw the MC curve on the same figure of questi The fixed cost for the monopoly company is $25. Find the optin output level and the related profit/loss for it.

The following figure describes the market demand curve of a monopoly market: Price, cost 10 9 S 7 6 5 4 3 2 a. b. 5 10 15 20 25 30 35 4 D a). 50 55 60 65 70 75 80 85 quantity Draw the marginal revenue (MR) curve for the monopoly given above market demand curve. If the monopoly firm can produce any output level with the ex cost $3 per unit, how would the marginal cost (MC) curve be? List mathematical equation and draw the MC curve on the same figure of questi The fixed cost for the monopoly company is $25. Find the optin output level and the related profit/loss for it.

Principles of Economics (MindTap Course List)
Principles of Economics (MindTap Course List)
8th Edition
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter15: Monopoly
Section: Chapter Questions
Problem 8PA
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Question 5 The following figure describes the market demand curve of a monopoly market: 10 Price, cost 9 8 7 6 3 2 1 a. b. C. d. 5 10 15 20 25 30 35 D a). 45 50 55 60 65 70 75 80 85 quantity Draw the marginal revenue (MR) curve for the monopoly given the above market demand curve. If the monopoly firm can produce any output level with the extra cost $3 per unit, how would the marginal cost (MC) curve be? List the mathematical equation and draw the MC curve on the same figure of question The fixed cost for the monopoly company is $25. Find the optimal output level and the related profit/loss for it. There are two proposals concerning the market efficiency: Plan A: regulate the market price at $4. Plan B: allow and help the monopoly enforce the perfect price discrimination. If you represent consumers to vote for one plan, which one would you choose? Explain with proper calculation (Hint: consumers only care about their welfare).
Transcribed Image Text:Question 5 The following figure describes the market demand curve of a monopoly market: 10 Price, cost 9 8 7 6 3 2 1 a. b. C. d. 5 10 15 20 25 30 35 D a). 45 50 55 60 65 70 75 80 85 quantity Draw the marginal revenue (MR) curve for the monopoly given the above market demand curve. If the monopoly firm can produce any output level with the extra cost $3 per unit, how would the marginal cost (MC) curve be? List the mathematical equation and draw the MC curve on the same figure of question The fixed cost for the monopoly company is $25. Find the optimal output level and the related profit/loss for it. There are two proposals concerning the market efficiency: Plan A: regulate the market price at $4. Plan B: allow and help the monopoly enforce the perfect price discrimination. If you represent consumers to vote for one plan, which one would you choose? Explain with proper calculation (Hint: consumers only care about their welfare).
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  1. There are two proposals concerning the market efficiency:

Plan A: regulate the market price at $4.

Plan B: allow and help the monopoly enforce the perfect price discrimination. If you represent consumers to vote for one plan, which one would you choose? Explain with proper calculation (Hint: consumers only care about their welfare).

 

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