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Unformatted text preview: Why or why not? e. Identify the area representing dead-weight-loss (if any) in your diagram in part (b) and determine its numerical value f. What type of barriers to entry story would be a plausible/reasonable explanation for the DeBeers monopoly? 2. Assuming simple monopoly, show that marginal revenue and own-price elasticity can be related in the following way described below. That is, show how you go from the expression for marginal revenue which is mr(x) = P(x)*1+x*( d P(x)/ d x) to the expression below: mr(x) = P(x)[1 + (1/own-price-elasticity-of-demand)]. Econ 313 - Wissink - Fall 2005 PS#6 XtraQ (NOTE WE ARE JUMPING BACK TO TO PS#6) DUE: In class on Monday Nov 28 (only the XtraQ will be due at that time)...
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- Fall '06