question 1 10 marks the following graph represents the situation of sindbad s caps a firm selling caps in the perfectly competitive caps industry 1 how much output should sindbad produce to maximize his profit if the market price is equal to

Question 1 (10 Marks)

The following graph represents the situation of Sindbad’s caps, a firm selling caps in the perfectly competitive caps industry.

  • How much output should Sindbad produce to maximize his profit, if the market price is equal to $11? (2 marks)
  • How much profit (loss) will he earn? (2 marks)
  • Indicate the profit (loss) area on the graph. (2 marks)
  • Find the fixed cost paid by the firm. (2 marks)
  • Suppose Sindbad decides to shut down. What would his loss be? (2 marks)

Question 2 (20 Marks)

The figure below shows the demand and cost curves for a monopolist. Assume there are no fixed costs in the market and an unlimited number of units of the product can be produced at a marginal cost of $5 per unit. As a result average total cost and marginal cost are the same.

  • Find the output level and the price charged to consumers, when the monopolist is maximizing its profit. (6 marks)
  • Find the monopoly’s total economic profit when it is maximizing its profit. (4 marks)
  • Indicate the area of consumer surplus under monopoly. (2 marks)
  • What would be the market price and the market quantity, if the industry in the figure was perfectly competitive (Assuming a constant cost industry)? (4 marks)
  • Indicate the area of consumer surplus when the market is served by perfectly competitive firms. (2 marks)
  • What is the area of the deadweight loss from monopoly? (2 marks)
#write essay #research paper #blog writing #article writing #academic writer #reflective paper #essay pro #types of essays #write my essay #reflective essay #paper writer #essay writing service #essay writer free #essay helper #write my paper #assignment writer #write my essay for me #write an essay for me #uk essay #thesis writer #dissertation writing services #writing a research paper #academic essay #dissertation help #easy essay #do my essay #paper writing service #buy essay #essay writing help #essay service #dissertation writing #online essay writer #write my paper for me #types of essay writing #essay writing website #write my essay for free #reflective report #type my essay #thesis writing services #write paper for me #research paper writing service #essay paper #professional essay writers #write my essay online #essay help online #write my research paper #dissertation writing help #websites that write papers for you for free #write my essay for me cheap #pay someone to write my paper #pay someone to write my research paper #Essaywriting #Academicwriting #Assignmenthelp #Nursingassignment #Nursinghomework #Psychologyassignment #Physicsassignment #Philosophyassignment #Religionassignment #History #Writing #writingtips #Students #universityassignment #onlinewriting #savvyessaywriters #onlineprowriters #assignmentcollection #excelsiorwriters #writinghub #study #exclusivewritings #myassignmentgeek #expertwriters #art #transcription #grammer #college #highschool #StudentsHelpingStudents #studentshirt #StudentShoe #StudentShoes #studentshoponline #studentshopping #studentshouse #StudentShoutout #studentshowcase2017 #StudentsHub #studentsieuczy #StudentsIn #studentsinberlin #studentsinbusiness #StudentsInDubai #studentsininternational