Question

A monopoly has a total cost function of: TC = 100 + 6Q +
3Q^{2}. Its inverse demand is given by: P = 150 − 6Q. What
is the **deadweight loss from monopoly?**

Answer #1

Ans.

Consider a natural monopoly with the following total cost
function: TC= 1000 + 20Q and the demand given by P = 140 - 2Q. If
you would like to eliminate the deadweight loss completely, what
pricing would you suggest that the government imposes on this
monopoly.
P=MC=20Q and a subsidy to make sure that the monopoly can cover
the fixed cost
P=AC=20 and a tax to move the quantity traded to the efficient
level
None of the other answers is...

A monopoly has the following demand and total cost
curves:
Demand: P=500-5Q
Costs: TC=200Q+10Q^2
You also know its marginal cost and marginal revenue
curves:
MC=200+20Q
MR=500-10Q
What is the Deadweight Loss for Monopoly? What is Consumer
Surplus? (Hint: it would help to draw a graph for this question, as
you did in the Extra Credit)
Select one:
a. DWL=$100; CS=$250
b. DWL=$50; CS=$250
c. DWL=$100; CS=$150
d. DWL=$50; CS=$150

1) The inverse demand curve a monopoly faces
is
p=110−2Q.
The firm's cost curve is
C(Q)=30+6Q.
What is the profit-maximizing solution?
2) The inverse demand curve a monopoly faces
is
p=10Q-1/2
The firm's cost curve is
C(Q)=5Q.
What is the profit-maximizing solution?
3) Suppose that the inverse demand function for
a monopolist's product is
p = 7 - Q/20
Its cost function is
C = 8 + 14Q - 4Q2 + 2Q3/3
Marginal revenue equals marginal cost when output
equals...

A monopolist faces an inverse demand of p(y)=100-5y, and its
total cost of production is c(y)=20y, where y is the output level.
The monopolist maximizes its profits at output level equal to 8.
Calculate the deadweight loss of this monopoly.

A monopoly has an inverse market demand of ? = 100 − ? where ?
is the market price and ? is the market quantity demanded and a
constant marginal cost of $50. Find the deadweight loss caused by
the allocative inefficiency of the monopoly.

A monopoly faces the following inverse demand function:
p(q)=100-2q, the marginal cost is $10 per unit.
What is the profit maximizing level of output, q*
What is the profit maximizing price
what is the socially optimal price
What is the socially optimal level of output?
What is the deadweight loss due to monopoly's profit maximizing
price?

If a representative with total cost given by TC = 64 + 6q + q^2
operates in a competitive industry where the market demand is given
by QD = 2,000 - 10P, the long-run equilibrium output of the
representative firm (i,e q) will be:

Consider a single-price monopolist. The monopolist's total cost
function is given by TC=2Q2. The demand curve for the
monopolist's outputs is given by Q=300-0.25P. The market will have
a deadweight loss of $____.

he inverse demand function faced by a monopoly is given
byP=103Q. The monopolyhas a total cost functionTC=Q2+2Q and a
marginal cost function MC=2Q+2.
(a) What are the monopolist’s profit maximizing price and
quantity? Show these and theassociated deadweight loss on a
diagram.
(b) Calculate what price and quantity would prevail if this were
a perfectly competitive marketwith the marginal cost curve acting
as the supply curve? Show this price on your diagramfor part
(a).
(c) If the government imposes a...

A
monopoly has an inverse demand curve given by: p=28-Q
And a constant marginal cost of $4. Calculate deadweight loss
if the monopoly charges the profit-maximizing price.
Round the number to two decimal places.

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