Question . 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) ? &quot; - 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%  