Suppose the market demand function for a normal product is ? = ?? − ?, and...

a. Draw the demand curve and the marginal cost curve using price and marginal cost measure in vertical axis and quantity demanded and/ or supplied in horizontal axis.

b. Find the marginal revenue function of the product and the marginal revenue curve in the diagram drawn in part a.

c. How much would be equilibrium price and quantity supplied in the monopoly market?

d. Calculate the consumer surplus, producer surplus and total surplus in monopoly market structure.

e. Show that monopoly market allocation reduces social welfare compared to competitive market allocation.

Do not answer the part a. because i already did this but you should answer part b to e

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Rahul Sunny answered 1 year ago

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