Ctri than the 7. Monopoly is inefficient if it produces a level of output that i

Question

Ctri than the 7. Monopoly is inefficient if it produces a level of output that is socially efficient level of output which creates a Use the information in the demand schedule below to fill in blanks 8. and 9 Price per unit $70 60 50 40 30 8. 9. 10. For a monopolist that is not able to price discriminate, total revenue for 3 units is For a monopolist that is able to perfectly price discriminate, total revenue for 3 units is The market structure characterized by many firms, product differentiation, and casy entry and exit in the long run is I Monopolistically competitive firms maximize profit by producing the output where so long as price is greater than 12. The monopoly aspect of a monopolistically competitive market that gives firms some market po wer is 13. Ceteris paribus, the typical firm in a monopolistically competitive market earns economic profit in the long run The market structure that produces the socially efficient level of output, maximizes total consumer surplus plus producer surplus, and does NOT create a deadweight loss is 14.

Explanation / Answer

7.

Less than

Deadweight loss

A deadweight loss is created in monopoly due to socially inefficient output.

8.

Total revenue = 40*3 = $120

Due to no price discrimination, 3 units can only be sold at one price that $40

9.

Total revenue = 60+50+40 = $150

Due to different price discrimination, each unit is sold at different prices.

10.

Monopolistic market structure

11.

MR = MC

Price is greater than MC.

The profit maximizing output is achieved at MR = MC and goods can be sold as long as the price is higher than the marginal cost.

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