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Ch25_monopQ - PC and P PC if this were a perfectly...

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Chapter 25 - Questions on Monopolies PRINCIPLES OF MICROECONOMICS 1.) Fill in the table below and use the information to answer the questions that follow: Q P TR MR TC MC 1 26 50 ----- 2 24 62 3 22 72 4 20 86 5 18 104 6 16 126 a) What is the value of Q M * for this monopolist? How did you find this value? b) What price will this monopolist charge at Q*? c) How does this outcome compare to what would occur in a PC market? What would be the values for Q
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Unformatted text preview: PC * and P PC * if this were a perfectly competitive market? 2.) Using the graph for a Monopolistic producer below, answer all the questions. costs MC ATC D = price MR 6 10 Q a) What is the price and quantity the monopolist will sell at? b) Compute profits for this monopolist? Shade and label the area of profits on the graph. c) Compute the size of the social loss triangle? Shade and label this area on the graph $10 $9 $7.50 $5...
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