Suppose there is only one producer of popsicles in Icetown. The market demand for popsicles can be represented by P = 10 - (2), where Q is the number of 10' popsicles and P is the price per popsicle. Also suppose this producer faces marginal costs of MC = 0.05**Q and average total costs of ATC = (100) + 0.0250. What is the deadweight loss when the monopolist produces at its profit - maximizing quantity (rounded to the nearest dollar)? A. $107 B. $80 C. $53 D. $27 Suppose there is only one producer of popsicles in Icetown. The market demand for popsicles can be represented by P=10-(Q/10), where Q is the number of popsicles and P is the price per popsicle. Also suppose this producer faces marginal costs of MC = 0.05 Q and average total costs of ATC (100/Q)+0.025Q. What is the deadweight loss when the monopolist produces at its profit-maximizing quantity (rounded to the nearest dollar)? A. $107 B. $80 OC. $53 D. $27
Suppose there is only one producer of popsicles in Icetown. The market demand for popsicles can be represented by P = 10 - (2), where Q is the number of 10' popsicles and P is the price per popsicle. Also suppose this producer faces marginal costs of MC = 0.05**Q and average total costs of ATC = (100) + 0.0250. What is the deadweight loss when the monopolist produces at its profit - maximizing quantity (rounded to the nearest dollar)? A. $107 B. $80 C. $53 D. $27 Suppose there is only one producer of popsicles in Icetown. The market demand for popsicles can be represented by P=10-(Q/10), where Q is the number of popsicles and P is the price per popsicle. Also suppose this producer faces marginal costs of MC = 0.05 Q and average total costs of ATC (100/Q)+0.025Q. What is the deadweight loss when the monopolist produces at its profit-maximizing quantity (rounded to the nearest dollar)? A. $107 B. $80 OC. $53 D. $27
Chapter14: Monopoly
Section: Chapter Questions
Problem 14.1P
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Question
Transcribed Image Text:Suppose there is only one producer of popsicles in
Icetown. The market demand for popsicles can be
represented by P = 10 - (2), where Q is the number of
10'
popsicles and P is the price per popsicle. Also suppose
this producer faces marginal costs of MC = 0.05**Q and
average total costs of ATC = (100) + 0.0250. What is
the deadweight loss when the monopolist produces at
its profit - maximizing quantity (rounded to the nearest
dollar)? A. $107 B. $80 C. $53 D. $27
Suppose there is only one producer of popsicles in Icetown. The market demand for popsicles can be
represented by P=10-(Q/10), where Q is the number of popsicles and P is the price per popsicle. Also
suppose this producer faces marginal costs of MC = 0.05 Q and average total costs of
ATC (100/Q)+0.025Q.
What is the deadweight loss when the monopolist produces at its profit-maximizing quantity (rounded to
the nearest dollar)?
A. $107
B. $80
OC. $53
D. $27
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