The directions are posted below with pictures. Pretty self explanitory. I just n
ID: 1117291 • Letter: T
Question
The directions are posted below with pictures. Pretty self explanitory. I just need three or more new questions with the answers for the parts A B and C.
Please help me with this!!!!
Thanks!!!!
The FRQ gives a diagram of the D, MR, MC, and ATC curves for a monopoly that includes actual price and quantity numbers, then asks you to use those numbers to identify or calculate various values to demonstrate your understanding of the monopoly diagram. Your homework is NOT to answer the questions it asks, but rather to come up with three new questions that work the same way and are based on the same diagram.
Label your new questions as parts (d), (e), and (f), and each part should require the student to use the numbers in the diagram to identify or calculate some other value not already asked about in parts (a) through (c). Each of the new questions should test the students' understanding of one of the concepts about the monopoly diagram that is not already tested by the earlier parts. You should include your new question. worded clearly and in a style similar to the existing parts, then follow it with the correct answer or solution that would earn full credit.
There are many possible additional questions that could be asked about that diagram, hence more than three correct answers. If you need some ideas, examples of some of the things we talked about that are not already tested by parts (a) through (c) are price ceilings, per-unit and lump sum subsidies, price ceilings, and revenue maximization. You could even use the same diagram to ask some questions about monopolistic competition instead of monopoly.
4 74 1. The graph below shows the demand, marginal revenue, and cost curves for a monopolist. Marginal Cost 40 Average Total Cost 24 20- 18 16 12 Demand 0 8 9 10 12 14 QUANTITY (units) Marginal Revenue (a) Using the numbers in the graph, identify each of the following.Explanation / Answer
c. Using the numbers in the graph, identify the profit maximizing output quantity if the monopolist were able to implement a uniform two part-tariff?
This question lets you examine the scenario under a different type of price discrimination by the monopolist.
d. Calculate the deadweight loss under uniform pricing, perfect price discrimination and uniform two-part tariff using the numbers above.
This question lets you evaluate the best pricing strategy by considering the deadweight loss for the monopolist.
e. Suppose the government tries to regulate the monopolist by forcing it to charge a price equal to the marginal cost. Find the quantity produced and the monopolists profit under this scenario.