he only9. Serena is a single-price, profit-maximizing monopolistin the sale of her own patented perfume, whose demandand marginal cost curves are as shown. (LO4, LO5, LO6)in por-d runsf eightshowno fixedis $1260МСAN50458.1 Thtab40no302015Annual10Fixed cVariableMRTotal co04 6 8121624hargeOunces/dayAveraghowWhatper 9day8.2 Wa. Relative to the consumer surplus that would resulat the socially optimal quantity and price, howmuch consumer surplus is lost from her selling athe monopolist's profit-maximizing quantity andWeits?andoftom-mes toduce1 heprice?reb. How much total surplus would result if Serenathcould act as a perfectlyuprice-discriminatingmonopolist?$ per ounceE

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Asked Oct 27, 2019
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9a and 9b? 

he only
9. Serena is a single-price, profit-maximizing monopolist
in the sale of her own patented perfume, whose demand
and marginal cost curves are as shown. (LO4, LO5, LO6)
in por-
d runs
f eight
shown
o fixed
is $12
60
МС
AN
50
45
8.1 Th
tab
40
no
30
20
15
Annual
10
Fixed c
Variable
MR
Total co
0
4 6 8
12
16
24
harge
Ounces/day
Averag
how
What
per 9
day
8.2 W
a. Relative to the consumer surplus that would resul
at the socially optimal quantity and price, how
much consumer surplus is lost from her selling a
the monopolist's profit-maximizing quantity and
We
its?
and
of
tom-
m
es to
duce
1 he
price?
re
b. How much total surplus would result if Serena
th
could act as a perfectly
u
price-discriminating
monopolist?
$ per ounce
E
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he only 9. Serena is a single-price, profit-maximizing monopolist in the sale of her own patented perfume, whose demand and marginal cost curves are as shown. (LO4, LO5, LO6) in por- d runs f eight shown o fixed is $12 60 МС AN 50 45 8.1 Th tab 40 no 30 20 15 Annual 10 Fixed c Variable MR Total co 0 4 6 8 12 16 24 harge Ounces/day Averag how What per 9 day 8.2 W a. Relative to the consumer surplus that would resul at the socially optimal quantity and price, how much consumer surplus is lost from her selling a the monopolist's profit-maximizing quantity and We its? and of tom- m es to duce 1 he price? re b. How much total surplus would result if Serena th could act as a perfectly u price-discriminating monopolist? $ per ounce E

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Expert Answer

Step 1

Monopoly market is a market with single seller of a good or service that does not have any close substitutes.

 

Step 2

(a)

 

According to the given figure, a firm will set his profit maximizing quantity at the point where marginal cost (MC) equal to marginal revenue (MR) and social optimum quantity where the MC equals marginal benefit (MB). therefore, here the profit maximizing quanti...

50
мс
40
30
20
15
10
4 68
12
16
Ouncesiday
Sper ounce
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Image Transcriptionclose

50 мс 40 30 20 15 10 4 68 12 16 Ouncesiday Sper ounce

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