Question

The following graph describes the demand, marginal revenue, marginal cost, and average total cost curves that a monopolist faces. Use the graph to answer the questions below. 60 50 40 Price ($) 30 MC=ATC D 20 10 MR 0 0 20 40 60 80 100 120 Quantity 1. What will be the monopoly price, output, and profit for this firm? (3 points) 2. Shade the sections of the graph that represent the consumer surplus and producer surplus. (2 point) 3. If this industry were competitive and every firm had the same marginal costs shown in the picture, what would be the price, output and profit? (3 points) 4. Shade the section of the graph that represents the deadweight loss from the monopoly. (1 point)

          The following graph describes the demand, marginal revenue, marginal cost, and average total cost curves that a monopolist faces. Use the graph to answer the questions below.

60
50
40
Price ($)
30
MC=ATC
D
20
10
MR
0
0
20
40
60
80
100
120
Quantity

1. What will be the monopoly price, output, and profit for this firm? (3 points)
2. Shade the sections of the graph that represent the consumer surplus and producer surplus. (2 point)
3. If this industry were competitive and every firm had the same marginal costs shown in the picture, what would be the price, output and profit? (3 points)
4. Shade the section of the graph that represents the deadweight loss from the monopoly. (1 point)

The following graph describes the demand, marginal revenue, marginal cost, and average total cost curves that a monopolist faces. Use the graph to answer the questions below.

60
50
40
Price ()
30
MC=ATC
D
20
10
MR
0
0
20
40
60
80
100
120
Quantity

1. What will be the monopoly price, output, and profit for this firm? (3 points)
2. Shade the sections of the graph that represent the consumer surplus and producer surplus. (2 point)
3. If this industry were competitive and every firm had the same marginal costs shown in the picture, what would be the price, output and profit? (3 points)
4. Shade the section of the graph that represents the deadweight loss from the monopoly. (1 point)

Added by Duane L.

Question

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