please help with C c. In the coordinate axis below, combine the elements you circled in part (b)and use them to identify the optimal monopoly output, monopoly price andmonopoly profits. Compare these predictions to the price and profitconditions for the firm as a competitor that you developed in part a.PFirmQ 1. Monopoly Pricing. A Graphical Analysis. The two panel graph below illustratesthe market for canned peaches (in the left panel) and cost conditions for arepresentative firm. Assume that the peach industry is competitive.PP.a. In the rightmost panel illustrate the optimal output, price and profit levelsfor the competitive firm.SMarketDOptimal priceплинтMC ATCOptimal outpoutFirm Q*b. Suppose that due to concerns regarding the paucity of domestic peachproducers the government gives to USA Peaches Inc. an exclusive right todomestically produce and sell canned peaches. In your above graphscircle the components in the competitive market and firm charts that youwould use to generate predictions for the monopolist.

The profit maximizing condition for the monopolist is MR = MC whereas the profit maximizing…

c. In the coordinate axis below, combine the elements you circled in part (b) and use them to identify the optimal monopoly output, monopoly price and monopoly profits. Compare these predictions to the price and profit conditions for the firm as a competitor that you developed in part a. P

c. In the coordinate axis below, combine the elements you circled in part (b) and use them to identify the optimal monopoly output, monopoly price and monopoly profits. Compare these predictions to the price and profit conditions for the firm as a competitor that you developed in part a. P

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 31P: Return to Figure 9.2. Suppose P0 is 10 and P1 is 11. Suppose a new firm with the same LRAC curve as...

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Question

please help with C

c. In the coordinate axis below, combine the elements you circled in part (b)
and use them to identify the optimal monopoly output, monopoly price and
monopoly profits. Compare these predictions to the price and profit
conditions for the firm as a competitor that you developed in part a.
P
Firm
Q

1. Monopoly Pricing. A Graphical Analysis. The two panel graph below illustrates
the market for canned peaches (in the left panel) and cost conditions for a
representative firm. Assume that the peach industry is competitive.
P
P.
a. In the rightmost panel illustrate the optimal output, price and profit levels
for the competitive firm.
S
Market
D
Optimal price
плинт
MC ATC
Optimal outpout
Firm Q*
b. Suppose that due to concerns regarding the paucity of domestic peach
producers the government gives to USA Peaches Inc. an exclusive right to
domestically produce and sell canned peaches. In your above graphs
circle the components in the competitive market and firm charts that you
would use to generate predictions for the monopolist.

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