HW5_answersforstudents - HW #5 Economics 304K: Principles...

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HW #5 Economics 304K: Principles of Microeconomics Prof. Meg Ledyard Due Monday, November 22, 2004 (25 Points total) Remember to type the homework except for charts and graphs. (Note, there are only 24 points because I didn’t add right, so they get 1 free point). Question 1 (7 points): Suppose that Bud Selig has a monopoly on the sale of major league baseball tickets.  a. (4 points) Show in a graph, the price that Bud will charge (a price on the  graph, not a number), the quantity he will produce, and the profits he will  make, and the dead weight loss from the sale of baseball tickets.  You must  include the MC and ATC curves, demand curve, and marginal revenue, along  with anything else you think that you need.  Are the profits positive or  negative? Area of (ABC) = Deadweight loss P Q D ATC MR Q MC P B C Profits
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Profits are Positive.
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b. (2 points) If the market were perfectly competitive, and the MC curve was the  supply curve for the industry, on a new graph, show the price in the market,  and the quantity that the industry would produce.
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This note was uploaded on 09/14/2009 for the course ECON 304K taught by Professor Ledyard during the Fall '08 term at University of Texas at Austin.

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HW5_answersforstudents - HW #5 Economics 304K: Principles...

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