EBK INTERMEDIATE MICROECONOMICS AND ITS
12th Edition
ISBN: 9781305176386
Author: Snyder
Publisher: YUZU
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Question
Chapter 11, Problem 11.7P
a)
To determine
The outputs and prices of perfect competitive and
b)
To determine
The total loss of
c)
To determine
Graph for the given market is to be drawn.
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Students have asked these similar questions
Suppose the long-run marginal cost for a firm is given by
MC= x^2 - 2x+5 , where x is the quantity supplied by the firm. Demand for the industry’s product is given by Q= 200-2p, where Q is quantity demanded and p is price. Consider two possibilities: (1) The industry is perfectly competitive ,or (2) the industry is an unnatural monopoly that operates at a single price.
(a) What will the amounts of firm and industry output (x, Q) be under each form of industrial organization?
(b) How much would a firm be willing to pay to obtain the right to act as a monopoly in this industry? Please show your work.
(c) What is the dollar amount of deadweight loss from the monopoly?
Please show work for each part.
Price
(dollars
per unit)
600
400
AC = MC
De mand
Marginal revenue
200
400
Computers
(units per day)
The graph above shows the average cost, marginal cost, demand, and marginal revenue curves for selling computers in a given market. The computer
industry is currently perfectly competitive and in equilibrium. Suppose all firms in the industry are taken over by a single firm that establishes a
monopoly in the market. Assuming the monopoly maximizes profit,
Select one:
there will be no effect on the price of computers.
Ob.
the price of computers will increase from $400 to $600, but there will be no change in quantity demanded.
Oc.
the price of computers will be set equal to the marginal cost of computers.
O d
the price of computers will increase from $400 to $600, and the quantity demanded will fall from 400 to 200 per day.
Suppose a perfectly competitive industry can produce a product with total cost TC = Q? and the market
demand for the product is given by Q = 120 - Suppose that the same market can be served by a
monopolist operates with the same cost and demand functions. How does the consumer surplus change
due to monopoly relative to perfect competition?
It falls by 2000
It does not change
It falls by 1600
It falls by 1200
Chapter 11 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
Ch. 11.2 - Prob. 1TTACh. 11.2 - Prob. 2TTACh. 11.2 - Prob. 1MQCh. 11.2 - Prob. 2MQCh. 11.2 - Prob. 1.1MQCh. 11.2 - Prob. 2.1MQCh. 11.3 - Prob. 1MQCh. 11.3 - Prob. 1TTACh. 11.3 - Prob. 2TTACh. 11.4 - Prob. 1TTA
Ch. 11.4 - Prob. 2TTACh. 11.4 - Prob. 1MQCh. 11.4 - Prob. 2MQCh. 11.4 - Prob. 1.1TTACh. 11.4 - Prob. 2.1TTACh. 11.4 - Prob. 1.2TTACh. 11.4 - Prob. 2.2TTACh. 11.5 - Prob. 1MQCh. 11.5 - Prob. 1TTACh. 11.5 - Prob. 2TTACh. 11 - Prob. 1RQCh. 11 - Prob. 2RQCh. 11 - Prob. 3RQCh. 11 - Prob. 4RQCh. 11 - Prob. 5RQCh. 11 - Prob. 6RQCh. 11 - Prob. 7RQCh. 11 - Prob. 8RQCh. 11 - Prob. 9RQCh. 11 - Prob. 10RQCh. 11 - Prob. 11.1PCh. 11 - Prob. 11.2PCh. 11 - Prob. 11.3PCh. 11 - Prob. 11.4PCh. 11 - Prob. 11.5PCh. 11 - Prob. 11.6PCh. 11 - Prob. 11.7PCh. 11 - Prob. 11.8PCh. 11 - Prob. 11.9PCh. 11 - Prob. 11.10P
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