1. A firm encounters a demand function Qd = 60–0.5P and MC = AC = $20 (a) If the market is a competitive market, find the firm's equilibrium quantity, price and profit. (b) If the firm is a monopolist, find the firm's equilibrium quantity, price and profit. (c) Suppose being a monopolist, this firm can discriminate the market. Compute quantity, price, profit, consumer surplus, and deadweight loss in the secondary market. (d) Compute the price elasticity of demand at equilibrium price in the original market.

1. A firm encounters a demand function Qd = 60–0.5P and MC = AC = $20 (a) If the market is a competitive market, find the firm's equilibrium quantity, price and profit. (b) If the firm is a monopolist, find the firm's equilibrium quantity, price and profit. (c) Suppose being a monopolist, this firm can discriminate the market. Compute quantity, price, profit, consumer surplus, and deadweight loss in the secondary market. (d) Compute the price elasticity of demand at equilibrium price in the original market.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter13: Antitrust And Regulation

Section: Chapter Questions

Problem 10SQP

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