HW6_spring08 - M ), the quantity Amanda will produce (Q M...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
HW #6 Economics 304K: Principles of Microeconomics Prof. Meg Ledyard Due Thursday, 5/01/08 (25 Points total) Remember to type the homework except for charts and graphs.  In order to get full credit,  you must show all of your work.  Homework is due in class on the date listed above. Question 1: (4 points) Suppose that a monopoly producer of masks faces the following demand curve. Q P 0 50 1 48 2 43 3 36 4 27 5 11 Solve for the TR and MR for the firm.   Question 2: (10 points) Suppose that Tess is the monopoly producer of Purple People Eaters in the world.  In a  well labeled diagram, show the following: the monopoly price (P
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: M ), the quantity Amanda will produce (Q M ), the efficient quantity (Q Eff ), CS when the price is P M , and the DWL from producing Q M . Question 4 (11 points) Consider the production of mail delivery. Suppose mail delivery is a natural monopoly. In a well labeled diagram below, show the price of mail delivery, the profits of the firm, the quantity of mail delivered, and any DWL if the firm is regulated with ATC pricing. Also include the efficient quantity....
View Full Document

This note was uploaded on 06/08/2008 for the course ECON 304K taught by Professor Ledyard during the Spring '08 term at University of Texas at Austin.

Ask a homework question - tutors are online