PS8 Answer Key

PS8 Answer Key - due to fewer trades being made. 3....

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Chapter 12 Answer Key 1. a. 100 units b. $12 c. See graph below: 0 50 100 150 200 250 300 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 Quantity of output Cost MC ATC Demand MR 2. 0 50 100 150 200 250 300 $0 $2 $4 $6 $8 $10 $12 $14 $16 $18 $20 Quantity of output MC ATC Demand MR a. The monopolist would charge $12 for 100 units. b. A perfectly competitive industry would charge $6 for 200 units. c. Deadweight loss is shaded above. Deadweight loss is the loss of surplus
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Unformatted text preview: due to fewer trades being made. 3. Quantity Price Marginal Total cost Marginal Revenue Cost 0 20 1 125 125 115 95 2 115 105 200 85 3 103 79 275 75 4 93.50 65 340 65 5 85 51 395 55 6 77.50 40 440 45 a. 4 units b. $93.50 c. $34....
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