A monopolist sells good Q and demand is Q = 10-P, where P is price. The firm must Choose to produce Q = 1, 2, 3 or 4 units of output. Assume that MC is $2.95. In this case, the optimal Q* for the monopolist is units, and the resulting area of the triangle for consumer surplus is

A monopolist sells good Q and demand is Q = 10-P, where P is price. The firm must Choose to produce Q = 1, 2, 3 or 4 units of output. Assume that MC is $2.95. In this case, the optimal Q* for the monopolist is units, and the resulting area of the triangle for consumer surplus is

Principles of Microeconomics

7th Edition

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter15: Monopoly

Section15.3: The Welfare Cost Of Monopolies

Problem 3QQ

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4) A monopolist sells good Q and demand is Q = 10-P, where P is price. The firm must
choose to produce Q = 1, 2, 3 or 4 units of output. Assume that MC is $2.95. In this
case, the optimal Q* for the monopolist is units, and the resulting area of the
triangle for consumer surplus is

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