. **Use** the figure below to answer the following questions: (**Total 20 Marks.)**

a. If the market is perfectly competitive, what would be value of profit? Show calculation of the value below (Hint: Profit = *TR - TC*) **(6 Marks)**

b. If the market is a monopoly market, what would be the value of profit? Show calculation of the value below. (Hint: Profit = *TR - TC*)** (6 Marks)**

c. In perfectly competitive market, what is the **area** of consumers' surplus?**(3 Marks)**

d. Under the Monopoly market, what is the **area** of consumers' surplus? **(3 Marks)**

**e. **Also under a Monopoly market, what is the **area** of deadweight loss? **(2 Marks)**

**(**__Note that you are asked to show the____ area - ____not to calculate the value____. For ____Example: you can write____ (A,C,90) ____as the area of top triangle of the graph____.__

Image transcriptions

Final Exam Questions ECO_101 (Sec 16_A Spring 2020).docx - Word (Product Activation Failed) ? " - 5X FILE HOME INSERT DESIGN PAGE LAYOUT REFERENCES MAILINGS REVIEW VIEW ACROBAT Talha Omi - of Cut Copy Arial - 11 - A A Aa- A = = . F. HE N 1 AaBbCcDd AaBbCc[ AABB( AaBbCc AaBbCcDd AaBbCcD AaBbCc[ AaBbCcD, AaBbCcD AaBbCcDd AaBbCcDd H Find Paste BI U - abe X2 X' AZZ . A . = = = 1 2 . Sac Replace Format Painter 1 Normal 1 qsm Title Heading 1 1 No Spac... 1 Table Pa... Heading 2 Heading 3 Subtitle Subtle Em... Emphasis Select ~ Clipboard Font Paragraph Styles Editing Q8. Use the figure below to answer the following questions: (Total 20 Marks.) a. If the market is perfectly competitive, what would be value of profit? Show calculation of the value below (Hint: Profit = TR - TC) (6 Marks) b. If the market is a monopoly market, what would be the value of profit? Show calculation of the value below. (Hint: Profit = TR - TC) (6 Marks) In perfectly competitive market, what is the area of consumers' surplus?(3 Marks) d. Under the Monopoly market, what is the area of consumers' surplus? e. Also under a Monopoly market, what is the area of deadweight loss? (3 Marks) (2 Marks) Price A 90 C 50 B O E MC = ATC - - - - D MR 0 50 100 Quantity Note that you are asked to show the area - not to calculate the value. For Example: you can write (A.C.90) as the area of top triangle of the graph. AGE 3 OF 10 1499 WORDS -- 100%

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