SparkNotes: Free Study Guides No Fear Shakespeare: The Bard made easy SparkCharts: Just the facts TestPrep: SAT, ACT, and more 101s: College texts condensed Subject Finder: Browse by subject SparkCollege: Get in! SparkLife: 100% study-free home_bottom home_top BN_link
 
◄ PREVIOUS
Monopolies
NEXT ►
Duopolies and Oligopolies
 

Monopolies & Oligopolies

 
 

Problems

 
Problem 1.1:
Assume a monopolist has MC = 10 and no fixed costs. The monopolist faces a demand curve of P = 100 - 3Q. Find the equilibrium quantity and price.
 
[Solution]
Problem 1.2:
Assume a monopolist has MC = 10 and no fixed costs. The monopolist faces a demand curve of P = 100 - 2Q. The government imposes a tax of 10 dollars for every unit sold. Find the equilibrium quantity and price.
 
[Solution]
Problem 1.3:
True or False: A monopolist who faces a monotonically decreasing demand curve will always make profits.
 
[Solution]
Problem 1.4:
Assume a monopolist has MC = 20 and no fixed costs. The monopolist faces a demand curve of P = 100 - 4Q. Calculate the deadweight loss.
 
[Solution]
Problem 1.5:
For a non-Giffen good (a good with a non-increasing demand curve), show that price can never be less than marginal revenue.
 
[Solution]
 
Help | Feedback | Make a request | Report an error | Send to a friend

◄ PREVIOUS
Monopolies
NEXT ►
Duopolies and Oligopolies
 
 
 
 
 
 
Message Boards
Ask a question or start a discussion on the community boards.
  • Fiscal Policy
  • Macroeconomics
  • Stock Market
  • Economics and Politics
  •  
     
     
    Study Guides
    Learn more about the subject you're studying with these related SparkNotes.
  • Elasticity
  • Income Distribution
  •  
    SparkCharts
    A textbook's worth of information on an easy-to-read chart.
  • Macroeconomics
  • Microeconomics
  •  
     
     
    Contact Us | Privacy Policy | Terms and Conditions | About | Sitemap
    ©2008 SparkNotes LLC, All Rights Reserved.