Microeconomics
21st Edition
ISBN: 9781259915727
Author: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn Dr.
Publisher: McGraw-Hill Education
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Question
Chapter 21, Problem 4DQ
To determine
The antitrust laws and discussions within the monopoly case.
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Exhibit 9-4: A Monopoly
Total
Quantity
Total Fixed
Variable
Price
Demanded Cost
Cost
$100
$30
$0
90
1
$30
20
80
$30
48
70
3
$30
78
60
$30
110
50
$30
150
Refer to Exhibit 9-4. At an output level of 5 units, the monopolist earns a total profits
of about
O $100.00
O $102.00
O
$82.00
OS70.00
%24
2.
4.
5.
Table 15-20
A monopolist faces the following demand curve:
Quantity Price
0
$30
1
$27
2
3
+
$24
$21
$18
5
$15
6
7
8
0
$12
$9
$6
$3
10
$0
Refer to Table 15-20. If a monopolist faces a constant marginal cost of $5, how much output should the firm
produce in order to maximize profit?
O2 units
3 units
4 units
5 units
A local magic shop has a monopoly on the production of magic wands. Each customer wants only one magic
wand, and the table below shows each customer's willingness to pay. The marginal cost of producing a wand is
$21 no matter how many are produced.
Quantity demanded
Price per wand ($)
LO
01 2 3 4 5
6 78
30 27 24 21 18 15 12 96
If the shop can charge only a single price, it will charge $
wands.
If the firm practices perfect price discrimination, it will sell a total of
earn a profit of $|
and sell
wands and
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