HW_ch12 - m and the Price the monopolist charges(label this...

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Homework Question for Chapter 12 1. The following equations illustrate the output market faced by a monopolist; Demand Curve - Q d = 200 - P Marginal Revenue - MR = 200 - 2 Q d . Fixed cost = $7581, and Marginal cost = $10 (a) Graph the MR, MC, AVC, ATC and Demand curves. i. Is this firm a natural, resource or government monopoly? What is the differ- ence between a natural monopoly and a resource monopoly? ii. On the graph in (a) Calculate and Demonstrate the quantity the monopolist produces (label this point Q
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Unformatted text preview: m .) and the Price the monopolist charges (label this point P m .) iii. Calculate monopolist’s profit and Demonstrate it graphically. (b) Government decides to impose a price ceiling of $67 per unit on the monopolist. Redraw your graph in (a) on a separate set of axis. i. Calculate and Demonstrate new quantities the monopolist produces (label the new point Q c .) and the Prices the monopolist charges (label the point P c .) ii. Calculate the amount of profit the monopolist makes....
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