Help 1. American Bat Company (or ABC) is the sole producer of baseball bats. The famous Dr. Hou has estimated thefollowing for ABC:Market demand: Q = 195 – 0.5PMarginal Revenue: MR = 390 – 4QTotal Cost: TC = 100 + 30Q+ Q2Marginal Cost: MC = 30 + 2QAnswer the following: (a graph is not mandatory, but it would certainly help)a) If ABC exploits its market powers and act as a monopolist, what will be its P, Q, and profit?b) If ABC behaved as if it was a competitive firm, what would the equilibrium market P and Q? What is ABC'sprofit level?c) Calculate the CS, PS, and TS in the two situations described above. Is there a DWL from monopolisticbehavior? If so, so large is it?d) Suppose a price ceiling of $150 was imposed. What is the Q, profit and CS, PS, DWL now?e) To achieve “production efficiency", how much should ABC produce?

Uwing 1or Market demand: Q = 195 – 0.5P Marginal Revenue: MR = 390 – 4Q Total Cost: TC = 100 + 30Q + Q2 Marginal Cost: MC = 30 + 2Q swer the following: (a graph is not mandatory, but it would certainly help) f ABC exploits its market powers and act as a monopolist, what will be its P, Q, and profit? f ABC behaved as if it was a competitive firm, what would the equilibrium market P and Q? What is ABC's

Uwing 1or Market demand: Q = 195 – 0.5P Marginal Revenue: MR = 390 – 4Q Total Cost: TC = 100 + 30Q + Q2 Marginal Cost: MC = 30 + 2Q swer the following: (a graph is not mandatory, but it would certainly help) f ABC exploits its market powers and act as a monopolist, what will be its P, Q, and profit? f ABC behaved as if it was a competitive firm, what would the equilibrium market P and Q? What is ABC's

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter25: Monopoly

Section: Chapter Questions

Problem 3E

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