The social cost of a monopoly is equal to its    Question 13 options:   a)  fixed cost    b)  deadweight loss    c)  variable cost    d)  economic profit

Assume a market demand curve Y(p)=3000-15p and a firm’s marginal cost is 60 (MC=60), For a monopolist, solve for the optimal quantity supplied and prevailing market price.

Assume a monopoly firm is considering the production of two brands, 1 and 2. Marginal cost is constant at 20 for both products -- assume no fixed costs. The inverse demand for brand i is pi=140−qi−dqj , where i≠j and d is a constant.   Part A) Find the firm's QUANTITIES

The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q2 1. What is the firm’s profit πM? Indicate this on the graph. 2. What are the firm's fixed and variable costs? 3.  What would be the socially optimal Q* and P* (round to 1 decimal place if needed)

In order for a monopolist to sell a quantity of 12 units, the price must be $6. Marginal revenue at this quantity will be: Group of answer choices > $6 and < $12 = $6 < $6 > $12

Consider a monopoly market in which the initial price is $40K, the initial quantity is 20, and the elasticity of demand is -2.5. A government program directly supplies an additional 4 units at the market price. For example, this is surplus equipment being auctioned to the highest bidder. a) Estimate MC. Thereafter assume it is constant. b) Use the initial equilibrium and the elasticity of demand to approximate the initial demand curve. c) Approximate the monopolist’s demand after the program provides 4 units. d) Estimate the new price, the new quantity provided by the monopolist, and the new quantity consumed by customers. e) Sketch the situation.  f) Estimate the impact on CS, PS, GS, and SS assuming the METB is 0.25.

1) Which of the following is not a characteristic of a monopoly? A monopolist is able to charge a price greater than the marginal cost (MC). The product a monopolist sells has close substitutes. A monopolist has market power. A monopolist is the only seller of a good or service.

Compared to a single-price monopoly, when a monopoly can perfectly price discriminate, the deadweight loss increases remains the same decreases

Describe the pros and cons of common public policy responses to monopoly.