(e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly. She makes £ of profit. (f) How many kilos would she produce and what price would she charge if the coffee market was perfectly competitive? Give your answer to within one decimal place (e.g. 11.4). She would make aG kg of coffee and charge £ per kg. (g) Calculate the social cost (deadweight loss) of Dalia's market power (hint: its the area of a triangle). Give your answer to within one decimal place (e.g. 1.3). The deadweight loss is £
(e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly. She makes £ of profit. (f) How many kilos would she produce and what price would she charge if the coffee market was perfectly competitive? Give your answer to within one decimal place (e.g. 11.4). She would make aG kg of coffee and charge £ per kg. (g) Calculate the social cost (deadweight loss) of Dalia's market power (hint: its the area of a triangle). Give your answer to within one decimal place (e.g. 1.3). The deadweight loss is £
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 4E
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Transcribed Image Text:Dalia owns a small coffee roasting firm in Manchester. She is in a monopolistically competitive market and so has some market power. The inverse demand
function that she faces is given by
P=21 - 0.7 Q
where P is the price per kilo and Q is the kilos of coffee demanded and her total costs are given by
TC = 18 + 12 Q + 0.3 Q?
(a) What is the marainal revenue funotion of this
Transcribed Image Text:(e) To within one decimal places (e.g. 7.1), How much profit does she make? Make sure you round correctly.
She makes £
of profit.
(f) How many kilos would she produce and what price would she charge if the coffee market was perfectly competitive? Give your answer to within one
decimal place (e.g. 11.4).
She would make
|kg of coffee and charge £
per kg.
(g) Calculate the social cost (deadweight loss) of Dalia's market power (hint: its the area of a triangle). Give your answer to within one decimal place (e.g.
1.3).
The deadweight loss is £
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