W11_MT2_free-response answers

W11_MT2_free-response answers - Blue-book – 25 out of 50...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Blue-book – 25 out of 50 pts. (2 qns., 12 pts. each + 1) Answer these questions in your blue-book. Show your work and intermediate steps for partial credit. Points are split equally across all sub-parts. Your score will only be based on the marks in your blue-book. You will not receive any credit for anything written on your exam paper. You will receive 1 extra point for correctly writing your name, perm number, version (A,B,C, or D), and TA’s name on your blue-book. 1. A monopolist sells exclusively to Freya, whose demand is given by p = 15- 2 q and has MC = q (and no fixed cost). (a) Find the profit maximizing price, p , and quantity, q . Answer : p = 9 and q = 3 (b) What are the monopolists profits, the consumer surplus, and the deadweight loss? Answer : π = 22 . 5, CS = 9, and DWL = 6 (c) If the monopolist used a two-part tariff, instead of a uniform price, what would be the optimal per-unit price, p , fee, f , and quantity, q ....
View Full Document

This note was uploaded on 05/08/2011 for the course ECON 100B taught by Professor Kilenthong during the Spring '08 term at UCSB.

Page1 / 2

W11_MT2_free-response answers - Blue-book – 25 out of 50...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online