Whatisthedeadweightlossforthismonopolist

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Unformatted text preview: he
 marginal
cost
is
given
by
MC=10+Q.

 
 a.

 What
is
the
marginal
revenue
curve
of
this
monopolist?
 b.

 Graph
the
demand,
marginal
revenue,
and
marginal
cost
curves.
 c.

 What
is
the
socially
optimal
level
of
production?
 d.

 What
is
the
monopolist’s
ideal
quantity
of
production
if
the
monopolist
 only
charges
one
price
for
the
good?
What
price
does
he
charge?
 e.

 What
are
the
consumer
and
producer
surpluses
for
the
monopolist
 described
in
part
(d)?
What
is
the
deadweight
loss
for
this
monopolist?
 Mark
these
areas
on
your
graph.
 f.


 If
the
total
cost
curve
is
given
by
TC=15+10Q+Q2,
what
is
the
monopolist’s
 ATC?
What’s
the
monopolist’s
profit?
In
the
LR,
can
the
monopolist
stay
in
 business?
(Note:
you
do
not
need
to
graph
TC
or
ATC
to
do
this
question.)
 g.

 T/F:
The
“double‐the‐sl...
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