20th Assignment Consider a monopolist with a total cost of TC=24+2Q and marginal cost of $2 (MC=2). The monopolist faces a demand curve of P=16-Q. 1. Graph the monopolist. 2. Find price and quantity that the monopolist charges. 3. Find the profit and consumer surplus. 4. Find the deadweight loss to welfare.

Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter9: Monopoly
Section: Chapter Questions
Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...
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20th Assignment
Consider a monopolist with a total cost of TC=24+2Q
and marginal cost of $2 (MC=2). The monopolist faces
a demand curve of P=16-Q.
1. Graph the monopolist.
2. Find price and quantity that the monopolist
charges.
3. Find the profit and consumer surplus.
4. Find the deadweight loss to welfare.
Transcribed Image Text:20th Assignment Consider a monopolist with a total cost of TC=24+2Q and marginal cost of $2 (MC=2). The monopolist faces a demand curve of P=16-Q. 1. Graph the monopolist. 2. Find price and quantity that the monopolist charges. 3. Find the profit and consumer surplus. 4. Find the deadweight loss to welfare.
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