Unformatted text preview: b. (3 points) Draw the long run supply curve for the market. Question 3: (6 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 4: (10 points) Suppose that Amanda is the monopoly producer of handbags in the world. In a well labeled diagram, show the following: the monopoly price (P 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 ....
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- Fall '08