1) Consider that a monopoly is the single firm in a market. 1. Show the production and price levels in this market using a graph. 2. Discuss the differences between perfect competition and monopoly using the graph in parta and using words. 3. Assume that the price elasticity of demand increased in this market. Show the new equilibrium price, quantity, and monopoly by drawing a newgraph. Discuss the changes using words 4. Why does a change in elasticity of demand affect the monopoly? Discuss only using words. DO NOT draw a new graph.

1) Consider that a monopoly is the single firm in a market. 1. Show the production and price levels in this market using a graph. 2. Discuss the differences between perfect competition and monopoly using the graph in parta and using words. 3. Assume that the price elasticity of demand increased in this market. Show the new equilibrium price, quantity, and monopoly by drawing a newgraph. Discuss the changes using words 4. Why does a change in elasticity of demand affect the monopoly? Discuss only using words. DO NOT draw a new graph.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Monopoly

Section: Chapter Questions

Problem 4.5P

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