Econ - Monopoly and Deadweight
Question # 00004486
Posted By:
Updated on: 12/03/2013 02:18 PM Due on: 12/05/2013
Suppose that a firm has a monopoly on a good with
the following demand schedule:
Quantity Price
0 $10
1 $9
2 $8
3 $7
4 $6
5 $5
6 $4
7 $3
8 $2
9 $1
10 $0
a. What price and quantity will the monopolist produce
at if the marginal cost is a constant $4?
b. Calculate the deadweight loss from having
the monopolist produce, rather than a perfect
competitor.
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Solution: Econ - Monopoly and Deadweight