Chapter13: Monopoly And Antitrust
Section: Chapter Questions
Problem 7P
Related questions
Question
N8
![The following graph shows a monopolist
firm selling good A.
Use the given information to answer
questions 32 - 36.
$90
$50
$38
$30
$12
100
Question 32
D Question 33
D Question 34
MR
130
D Question 35
MC
How much is the profit-maximizing
price?
Answer: The profit-maximizing price =
$
D
How much is the maximized profit?
Answer: The maximized profit =
$
Question 36
ATC
Quantity
How much is the CS? (Don't forget to
multiply 0.5 to get the area of a
triangle.)
Answer: CS=$
Suppose the government regulates the
market such that the monopolistic firm
makes zero profit. Find the quantity
such that the firm makes zero profit.
(This is a bonus question. This question
is worth 3 points.)
Good B is a substitute for good A. If
good B becomes more expensive,
(a) what happens to the MR curve?
[Select]
(b) will the maximized profit increase or
decrease? [Select]
O](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F09a27e04-e028-4817-98f4-16232ab22457%2Fdea2c4e4-d901-40c3-8495-e6675cb57107%2Fpav2b0u_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The following graph shows a monopolist
firm selling good A.
Use the given information to answer
questions 32 - 36.
$90
$50
$38
$30
$12
100
Question 32
D Question 33
D Question 34
MR
130
D Question 35
MC
How much is the profit-maximizing
price?
Answer: The profit-maximizing price =
$
D
How much is the maximized profit?
Answer: The maximized profit =
$
Question 36
ATC
Quantity
How much is the CS? (Don't forget to
multiply 0.5 to get the area of a
triangle.)
Answer: CS=$
Suppose the government regulates the
market such that the monopolistic firm
makes zero profit. Find the quantity
such that the firm makes zero profit.
(This is a bonus question. This question
is worth 3 points.)
Good B is a substitute for good A. If
good B becomes more expensive,
(a) what happens to the MR curve?
[Select]
(b) will the maximized profit increase or
decrease? [Select]
O
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