ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
N8
![The following graph shows a monopolist
firm selling good A.
Use the given information to answer
questions 32 - 36.
$90
$50
$38
$30
$12
100
Question 32
D Question 33
D Question 34
MR
130
D Question 35
MC
How much is the profit-maximizing
price?
Answer: The profit-maximizing price =
$
D
How much is the maximized profit?
Answer: The maximized profit =
$
Question 36
ATC
Quantity
How much is the CS? (Don't forget to
multiply 0.5 to get the area of a
triangle.)
Answer: CS=$
Suppose the government regulates the
market such that the monopolistic firm
makes zero profit. Find the quantity
such that the firm makes zero profit.
(This is a bonus question. This question
is worth 3 points.)
Good B is a substitute for good A. If
good B becomes more expensive,
(a) what happens to the MR curve?
[Select]
(b) will the maximized profit increase or
decrease? [Select]
O](https://content.bartleby.com/qna-images/question/09a27e04-e028-4817-98f4-16232ab22457/dea2c4e4-d901-40c3-8495-e6675cb57107/pav2b0u_processed.jpeg)
Transcribed Image Text:The following graph shows a monopolist
firm selling good A.
Use the given information to answer
questions 32 - 36.
$90
$50
$38
$30
$12
100
Question 32
D Question 33
D Question 34
MR
130
D Question 35
MC
How much is the profit-maximizing
price?
Answer: The profit-maximizing price =
$
D
How much is the maximized profit?
Answer: The maximized profit =
$
Question 36
ATC
Quantity
How much is the CS? (Don't forget to
multiply 0.5 to get the area of a
triangle.)
Answer: CS=$
Suppose the government regulates the
market such that the monopolistic firm
makes zero profit. Find the quantity
such that the firm makes zero profit.
(This is a bonus question. This question
is worth 3 points.)
Good B is a substitute for good A. If
good B becomes more expensive,
(a) what happens to the MR curve?
[Select]
(b) will the maximized profit increase or
decrease? [Select]
O
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