The figure below shows the market for one hour of economics tutoring at your college. Imagine that the market for economics tutoring couldbe perfectly competitive, controlled by a monopolist who charges a single price or a monopolist who charges each customer a different price. Use theinformation in the diagram to answer the questions below.Price$100$60MC$20MRQuantity200100SUBMIT ANSWE03.17 >9 OF 17 QUESTIONS COMPLETEDMacBook Pro

Question
Asked Feb 5, 2019
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How much is total surplus if the market is perfectly competitive?

How much is total surplus if the market is controlled by a single price monopolist?

Suppose the single price monopolist started charging all customers the maximum price they are willing to pay. How much additional surplus is created?

The figure below shows the market for one hour of economics tutoring at your college. Imagine that the market for economics tutoring could
be perfectly competitive, controlled by a monopolist who charges a single price or a monopolist who charges each customer a different price. Use the
information in the diagram to answer the questions below.
Price
$100
$60
MC
$20
MR
Quantity
200
100
SUBMIT ANSWE
03.17 >
9 OF 17 QUESTIONS COMPLETED
MacBook Pro
help_outline

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The figure below shows the market for one hour of economics tutoring at your college. Imagine that the market for economics tutoring could be perfectly competitive, controlled by a monopolist who charges a single price or a monopolist who charges each customer a different price. Use the information in the diagram to answer the questions below. Price $100 $60 MC $20 MR Quantity 200 100 SUBMIT ANSWE 03.17 > 9 OF 17 QUESTIONS COMPLETED MacBook Pro

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Expert Answer

Step 1

Given that

Maximum price is $100

 

Minimum price is $20

 

Monopolist equilibrium price is $60

 

Monopolist equilibrium quantity is 100

 

Perfect competitive market equilibrium quantity is 200

 

Step 2

Known Facts:

Monopolist equilibrium point:

The monopolist equilibrium point will occur at where the marginal revenue and marginal cost intersect each other.

Perfect competition equilibrium point:

Perfect competition equilibrium point will occur at where the marginal cost and demand curve intersect each other.

Formula Used:

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Step 3

Part 1:

Find the Consumer surplus and Producer surplus for Prefect competi...

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