part 9 10 119. How doesthe price and output of a monopolist differ from thatofthe perfectly competitive A:industry? i.10. Whatportion of the consumer surplusin the competitive situation wastransferredto the firm inthe monopoly situation?11. How does a monopoly affect consumersurplus? Is this good or bad? 9. How does the price and output of a monopolist differ from that of the perfectly competitiveindustry?10. What portion of the consumer surplus in the còmpetitive situation was transferred to the firm inthe monopoly situation?11. How does a monopoly affect consumer surplus? Is this good or bad? Equilibrium for the MonopolistNow consider the same demand and cost curves, but assume the market is a monopoly. Therefore,MR represents the monopolist's marginal revenue curve and MC represents the monopolisť'smarginal cost curve. Using Figure 34.2, answer the following questions.X Figure 34.2Monopoly12MC1110ATC8-7.3.1-MR8 9 10 11 12QUANTITY5. What quantity of output will be produced?.Why?6. What price will the monopolist establish? -Why?7. Calculate the amount of the consumer surplus. Darkly shade the area of consumer surplus.8. Calculate the amount of the producer surplus. Lightly shade the area of producer surplus.COSTS/REVENUE

Monopoly is a single firm selling unique good. This gives them market power to charge price greater…

Answered: How doesthe price and output of a…

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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part 9 10 11

9. How doesthe price and output of a monopolist differ from thatofthe perfectly competitive A:
industry? i.
10. Whatportion of the consumer surplusin the competitive situation wastransferredto the firm in
the monopoly situation?
11. How does a monopoly affect consumersurplus? Is this good or bad?

9. How does the price and output of a monopolist differ from that of the perfectly competitive
industry?
10. What portion of the consumer surplus in the còmpetitive situation was transferred to the firm in
the monopoly situation?
11. How does a monopoly affect consumer surplus? Is this good or bad?

Equilibrium for the Monopolist
Now consider the same demand and cost curves, but assume the market is a monopoly. Therefore,
MR represents the monopolist's marginal revenue curve and MC represents the monopolisť's
marginal cost curve. Using Figure 34.2, answer the following questions.
X Figure 34.2
Monopoly
12
MC
11
10
ATC
8-
7.
3.
1-
MR
8 9 10 11 12
QUANTITY
5. What quantity of output will be produced?.
Why?
6. What price will the monopolist establish? -
Why?
7. Calculate the amount of the consumer surplus. Darkly shade the area of consumer surplus.
8. Calculate the amount of the producer surplus. Lightly shade the area of producer surplus.
COSTS/REVENUE

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