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Unformatted text preview: Why or why not? e. Identify the area representing deadweightloss (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 ownprice 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/ownpriceelasticityofdemand)]. 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
 MASSON

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