BIOL 1902 Study Guide - Deadweight Loss, Demand Curve, Economic Equilibrium
22 Nov 2013
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Midterm2_part a: (2*3=6 marks) state whether you agree or disagree with each of the following statements. Using appropriate diagrams, explain your response: a profit maximizing monopolist must operate on the elastic portion of the demand curve. See figure 11. 2 ( a monopolist must produce where mc=mr, if we draw an mc curve (mc must be greater than zero), it will intersect the mr to the left of q. =12 units (0 ar the monopolist would make a loss: (2. 5) a. Using diagrams, explain how a monopolist creates a deadweight loss. See (pages 399-402) (6) c. a monopoly sells its good in the u. s. and japanese markets. Assume that the firm"s marginal cost of production is m= 10 and the fixed cost is zero.
