What problems does Coase associate with Klein’s interpretation of the acquisition of Fisher Body by General Motors?

BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 4.00 3.50 Monopoly Outcome 3.00 2.50 Profit ATC 2.00 Loss 1.50 1.00 MC 0.50 MR 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 QUANTITY (Thousands of cans of beer) Suppose that BYOB charges $2.50 per can. Your friend Dmitri says that since BYOB is a monopoly with market power, it should charge a…

Please see how I've responded to the 2 questions below...Do you concur are am I off track here.   What will the dollar amount of economic gain or economic loss be? The amount of loss would be Quantity*(ATC-Price)= 9*(17.5-16)=$13.5   What will be the price and quantity where the firm will shut down? Price where there is not able to recover average variable cost in the market. Shut down price is $12 and Quantity is 7 units

IMPORTANT: The owner chooses to adopt a new technology that changes the cost function to C(q)=4q^2+2q+64. All the competitors follow her lead and choose to adopt the same technology and have the same cost function. They are all price-takers. From now on, use this cost function.

Consider a firm that uses capital and labor as inputs and sells 5,000 units of output per year at the going market price of $10. Also assume that total labor costs to the firm are $45,000 annually. Assume further that the total capital stock of the firm is currently worth $100,000, that the return available to investors with comparable risks is 10 percent annually, and that there is no depreciation. Calculate the economic profit and accounting profit of this firm? Explain your answer.?