please answer all questions! Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue…
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Question “please answer all questions! Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue…”
Answer
1. (15-6)
Correct Answer:
C
Working Note:
Dead weight loss = .5*(150-100)*(20-15) + .5*(150-100)*(15-10)
Dead weight loss = $250
——–
2.
Correct Answer:
B
Working Note:
To maximize profit,
MR = MC
90-2Q = Q
Q = 90/3 = 30,
So,
Price = 60-Q =60-30
Price: $30
———-
3.
Correct Answer:
B
It’s done by regulatory measures.
————
4. (15-5)
Correct Answer
B
BGE, the triangle area of surplus loss in the Monopoly is shown in the diagram.
————–
5. (15-2)
Correct Answer
C
Total Revenue = 500*42 = 21000
Conclusion
Above is the solution for “please answer all questions! Figure 15-6 Price $20+ Marginal Cost 100 150 200 Quantity Marginal Revenue…“. We hope that you find a good answer and gain the knowledge about this topic of business.