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Unformatted text preview: numbers here: b. Indicate on the graph the level of output and price if this were a perfectly competitive industry. Write those numbers here: c. Shade in the deadweight loss caused by the monopolist. Why is there deadweight loss? 3. Use the following table that shows the demand curve facing a monopolist along with some cost figures also faced by the monopolist. Quantity Price Total cost 0 20 1 125 115 2 115 200 3 103 275 4 93.50 340 5 85 395 6 77.50 440 a. What is the profit maximizing level of output? b. What price will the monopolist set? c. What will be the monopolists profit?...
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- Fall '08
- Economics, Demand MC ATC, output Demand MC