This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: f. Discuss reasons why a monopolist would choose to set a uniform price instead of different prices for different consumer groups. g. Imagine you are a social planner and wish to maximize welfare. What quantity Q would you like to see produced? Call it Q SOC . Find P SOC , CS SOC , and W SOC . Is this outcome efficient? h. Compare part g. with your answers from part a. and part b. What statements can you make about the monopoly outcome relative to the social planner’s preferred outcome? 2. Repeat part a. using the demand curve Q = 16/p 2 , and has cost function C(Q) = F + Q 2 /8. 3. (Easier practice question.) Repeat parts a through c. for the following demand and cost curve. Q = 1 – P and C(Q) = Q/2. 4. There are 49 firms and each firm has the cost function ±²³ ´ µ ¶ ² ¶ . And, they face common demand function Q=100-P. What is q, Q, P?...
View Full Document
This note was uploaded on 10/20/2010 for the course ECON ECON 105 taught by Professor Noel during the Fall '10 term at UCSD.
- Fall '10