The constant average and marginal costs of A C = M C = 5 and the market demand curve and marginal revenue curve are given by Q = 53 − P and M R = 53 − 2 Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

Question

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Answer 1

Question

Chapter 11, Problem 11.1P

a)

To determine

The constant average and marginal costs of AC=MC=5 and the market demand curve and marginal revenue curve are given by Q=53−P and MR=53−2Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

b)

To determine

The output level produced by the firm under perfect competition I to be calculated.

c)

To determine

Consumer surplus in the case (b) is to be calculated and also the sum of monopolist’s profits and consumer surplus in part (a) will be less than the consumer surplus is to be proved. The value of deadweight loss from monopolization is to be calculated.

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Answer 2

Question

Chapter 11, Problem 11.1P

a)

To determine

The constant average and marginal costs of AC=MC=5 and the market demand curve and marginal revenue curve are given by Q=53−P and MR=53−2Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

b)

To determine

The output level produced by the firm under perfect competition I to be calculated.

c)

To determine

Consumer surplus in the case (b) is to be calculated and also the sum of monopolist’s profits and consumer surplus in part (a) will be less than the consumer surplus is to be proved. The value of deadweight loss from monopolization is to be calculated.

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Answer 3

Question

Chapter 11, Problem 11.1P

a)

To determine

The constant average and marginal costs of AC=MC=5 and the market demand curve and marginal revenue curve are given by Q=53−P and MR=53−2Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

b)

To determine

The output level produced by the firm under perfect competition I to be calculated.

c)

To determine

Consumer surplus in the case (b) is to be calculated and also the sum of monopolist’s profits and consumer surplus in part (a) will be less than the consumer surplus is to be proved. The value of deadweight loss from monopolization is to be calculated.

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Answer 4

Question

Chapter 11, Problem 11.1P

a)

To determine

The constant average and marginal costs of AC=MC=5 and the market demand curve and marginal revenue curve are given by Q=53−P and MR=53−2Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

b)

To determine

The output level produced by the firm under perfect competition I to be calculated.

c)

To determine

Consumer surplus in the case (b) is to be calculated and also the sum of monopolist’s profits and consumer surplus in part (a) will be less than the consumer surplus is to be proved. The value of deadweight loss from monopolization is to be calculated.

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Answer 5

Chapter 11, Problem 11.1P

a)

To determine

The constant average and marginal costs of AC=MC=5 and the market demand curve and marginal revenue curve are given by Q=53−P and MR=53−2Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

b)

To determine

The output level produced by the firm under perfect competition I to be calculated.

c)

To determine

Consumer surplus in the case (b) is to be calculated and also the sum of monopolist’s profits and consumer surplus in part (a) will be less than the consumer surplus is to be proved. The value of deadweight loss from monopolization is to be calculated.

Answer 6

Chapter 11, Problem 11.1P

a)

To determine

The constant average and marginal costs of AC=MC=5 and the market demand curve and marginal revenue curve are given by Q=53−P and MR=53−2Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

Answer 7

Chapter 11, Problem 11.1P

a)

To determine

The constant average and marginal costs of AC=MC=5 and the market demand curve and marginal revenue curve are given by Q=53−P and MR=53−2Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

Answer 8

b)

To determine

The output level produced by the firm under perfect competition I to be calculated.

Answer 9

b)

To determine

The output level produced by the firm under perfect competition I to be calculated.

Answer 10

c)

To determine

Consumer surplus in the case (b) is to be calculated and also the sum of monopolist’s profits and consumer surplus in part (a) will be less than the consumer surplus is to be proved. The value of deadweight loss from monopolization is to be calculated.

Answer 11

c)

To determine

Consumer surplus in the case (b) is to be calculated and also the sum of monopolist’s profits and consumer surplus in part (a) will be less than the consumer surplus is to be proved. The value of deadweight loss from monopolization is to be calculated.

Answer 12

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Answer 13

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Answer 14

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Answer 15

Ch. 11.2 - Prob. 1TTA Ch. 11.2 - Prob. 2TTA Ch. 11.2 - Prob. 1MQ Ch. 11.2 - Prob. 2MQ Ch. 11.2 - Prob. 1.1MQ Ch. 11.2 - Prob. 2.1MQ Ch. 11.3 - Prob. 1MQ Ch. 11.3 - Prob. 1TTA Ch. 11.3 - Prob. 2TTA Ch. 11.4 - Prob. 1TTA

The constant average and marginal costs of A C = M C = 5 and the market demand curve and marginal revenue curve are given by Q = 53 − P and M R = 53 − 2 Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

Solution Summary: The author explains how the constant average and marginal costs of AC=MC=5 and the market demand and revenue curve are given by Q=53-P.

The constant average and marginal costs of AC=MC=5 and the market demand curve and marginal revenue curve are given by Q=53−P and MR=53−2Q . The profit maximizing price quantity combination and the monopolist’s profits and consumer surplus is to be calculated.

The output level produced by the firm under perfect competition I to be calculated.

Consumer surplus in the case (b) is to be calculated and also the sum of monopolist’s profits and consumer surplus in part (a) will be less than the consumer surplus is to be proved. The value of deadweight loss from monopolization is to be calculated.

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Chapter 11 Solutions