Question

5. At this monopolist’s profit-maximizing level of output what the deadweight loss to society?

The accompanying figure shows the demand curve, marginal revenue curve, marginal
cost eurve and average total cost curve for a monopolist.
30
28
26
24
22
20
18-
16
ATC
12
10
-MC
4
MR
2
3
6
9
10
Quantity (units/day!
1) This monopolist maximizes its profit by producing
charging a price of
4
units per day and
18
per unit
2) The socially optimal level of output is
8
units per day.
3) At this monopolist s profit-maximizing level of output what is its economic
profit or loss?
The economie loss is $-72 at the profit maximizing level.
4) At his monopolist's socially optimal level of output, what is its economic profit
or loss?
The Economic loss is $-64 at the socially optimal level.
5) At this monopolist's profit-maximizing level of output what the deadweight
loss to society!
14 of 118 words
Focus
31
பொ/து *uu
expand button
Transcribed Image Text:The accompanying figure shows the demand curve, marginal revenue curve, marginal cost eurve and average total cost curve for a monopolist. 30 28 26 24 22 20 18- 16 ATC 12 10 -MC 4 MR 2 3 6 9 10 Quantity (units/day! 1) This monopolist maximizes its profit by producing charging a price of 4 units per day and 18 per unit 2) The socially optimal level of output is 8 units per day. 3) At this monopolist s profit-maximizing level of output what is its economic profit or loss? The economie loss is $-72 at the profit maximizing level. 4) At his monopolist's socially optimal level of output, what is its economic profit or loss? The Economic loss is $-64 at the socially optimal level. 5) At this monopolist's profit-maximizing level of output what the deadweight loss to society! 14 of 118 words Focus 31 பொ/து *uu
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