Answer to Question #49405 in Microeconomics for susie
Consider a monopolist whose total cost function is TC = 40 + 4Q + Q2 and whose marginal cost function is MC = 4 + 2Q. The demand function for the firms good is P = 160 - 0.5Q. The firm optimizes by producing the level of output that maximizes profit or minimizes loss. If the firm uses a uniform pricing strategy, then rounded to the nearest dollar the deadweight loss that results is:
TC = 40 + 4Q + Q2, MC = 4 + 2Q, P = 160 - 0.5Q If the firm optimizes by producing the level of output that maximizes profit or minimizes loss, then output is produced at the point, where MR = MC: MR = TR' = 160 - Q 160 - Q = 4 + 2Q Q = 52 units Level of P at MR = MC is P = 4 + 2*52 = $108 Price of the monopolist is Pm = 160 - 0.5*52 = $134 The price discremination output is at MC = D: 4 + 2Q = 160 - 0.5Q Q = 62.4 If the firm uses a uniform pricing strategy, then rounded to the nearest dollar the deadweight loss that results is: DWL = 0.5*(134 - 108)*(62.4 - 52) = 0.5*26*10.4 = $135.2 So, the right answer is b) $135.
The clock is ticking. The coffee is brewing. The stress intensifies. And all you’ve written in the past 15 minutes…
APPROVED BY CLIENTS
I must say that when I first started with Assignment Experts I was very nervous because my maths assignments were due and two sending money to a company I don't know was a big what if for me. I took the chance and am telling you i have not been more pleased. Not only did they complete my assignment, but they were also very professional, and on time with every request not to mention affordable. Thank you! , Thank you! Thank you! A++++++ all the way.