A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q^2. a.)...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q^2.

a.) Derive the MC, ATC, and MR functions.

b.) Derive the profit-maximizing price, quantity, and profit. Show on a graph.

c.) What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph.

Expert Solution

Rahul Sunny answered 2 years ago

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q. a.)...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q. a.) Derive the MC, ATC, and MR functions. b.) Derive the profit-maximizing price, quantity, and profit. Show on a graph. c.) What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph.

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q^2 Derive...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q^2 Derive the MC, ATC, and MR functions. Derive the profit-maximizing price, quantity, and profit. Show on a graph. What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph. (PS- Please help with the graph! Thank you!!)

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q. Derive...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q. Derive the MC, ATC, and MR functions. Derive the profit-maximizing price, quantity, and profit. Show on a graph. What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph. Suppose demand for apartments in Honolulu is P=6600-0.5q and supply is...

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