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How does monopoly affect consumer surplus?

How does monopoly affect consumer surplus?. Is it good or bad?. Equilibrium for the perfectly competitive industry. $12. MC. What quantity of output will be produced?. 11. 10. 9. What price will the market establish?. 8. 7. 6. Calculate the amount of consumer surplus. 5.

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How does monopoly affect consumer surplus?

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  1. How does monopoly affect consumer surplus? Is it good or bad?

  2. Equilibrium for the perfectly competitive industry $12 MC What quantity of output will be produced? 11 10 9 What price will the market establish? 8 7 6 Calculate the amount of consumer surplus 5 4 Calculate the amount of producer surplus 3 2 D 1 0 1 2 3 4 5 6 7 8 9 10 11 12

  3. Equilibrium for the perfectly competitive industry $12 MC What quantity of output will be produced? 11 10 6 9 What price will the market establish? 8 Consumer surplus $6 7 6 Calculate the amount of consumer surplus 5 Producer surplus $18 (6x6)/2 4 Calculate the amount of producer surplus 3 2 $18 (6x6)/2 D 1 0 1 2 3 4 5 6 7 8 9 10 11 12

  4. Equilibrium for the monopolist $12 MC 11 What quantity of output will be produced? 10 ATC 9 What price will the market establish? 8 7 6 Calculate the amount of consumer surplus 5 4 Calculate the amount of producer surplus 3 2 What portion of consumer surplus in the competitive situation was transferred to the producer in the monopoly situation? D 1 MR 0 1 2 3 4 5 6 7 8 9 10 11 12

  5. Equilibrium for the monopolist What quantity of output will be produced? $12 4 MC 11 What price will the market establish? 10 ATC $8 9 Calculate the amount of consumer surplus 8 7 $8 (4x4/2) 6 Calculate the amount of producer surplus 5 4 $24 (4x4/2)+(4x4) 3 What portion of consumer surplus in the competitive situation was transferred to the producer in the monopoly situation? 2 D 1 MR 0 1 2 3 4 5 6 7 8 9 10 11 12 $8 (2x4) or (4/9)

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