need part d QUESTION 3A monopolist has a cost function of c(x) = x so that its marginal cost is constant at $1 perunit. It faces the following demand curve:if p > 20D(P) =- {100/p if p ≤ 20A. What is the profit-maximizing choice of output/price for the monopolist? Graphicallyrepresent the monopoly market.B. If the government sets a price ceiling on the monopolist in order to force it to act as acompetitor, what price should the government set?C. What output would the monopolist produce if forced to behave as a competitor?D. Based on the information in parts A - C, find the consumer-, producer-, and socialsurpluses before and after the government intervention.

Answered: Image /qna-images/answer/15a617de-6448-4c36-a0b2-54015738c3ce.jpg

Answered: D. Based on the information in parts A…

D. Based on the information in parts A - C, find the consumer-, producer-, and social surpluses before and after the government intervention.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.6P

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QUESTION 3 A monopolist has a cost function of c(x) = x so that its marginal cost is constant at $1 per unit. It faces the following demand curve: D(p) = {100/p 100/p if p > 20 if p ≤ 20 A. What is the profit-maximizing choice of output/price for the monopolist? Graphically represent the monopoly market. B. If the government sets a price ceiling on the monopolist in order to force it to act as a competitor, what price should the government set? C. What output would the monopolist produce if forced to behave as a competitor? D. Based on the information in parts A - C, find the consumer-, producer-, and social surpluses before and after the government intervention.
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