E202PracticeExam3.2

E202PracticeExam3.2 - a. Derive and graph producer surplus,...

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3. (15 pts) Suppose a monopolist faces a demand curve given by P = 60 - Q, with marginal cost curve MC = Q. a. Derive and graph producer surplus, consumer surplus, and total economic surplus. b. Derive and graph the deadweight loss due to monopoly 4. (15 pts) Suppose the monopolist in Problem 3 can perfectly price discriminate.
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Unformatted text preview: a. Derive and graph producer surplus, consumer surplus, and total economic surplus. Compare to the previous values. b. Is there any deadweight loss due to monopoly now? Why or why not?...
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This note was uploaded on 02/20/2012 for the course ECON 202 taught by Professor Brightwell during the Spring '08 term at Texas A&M.

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