Quiz: Homework Chapter 13 Monopoly Submit Quis This Question: 1 pt 23 of 23 (17

Question

Quiz: Homework Chapter 13 Monopoly Submit Quis This Question: 1 pt 23 of 23 (17 complete) This Quiz: 23 pts possibl Price and cost (cents per cubic foolt) The graph shows Calypso, a U.S. natural gas distributor. It is a natural monopoly that cannot price discriminate. Calculate consumer surplus, producer surplus, and the deadweight loss if Calypso is regulated to be efficient. >>Remember that the price given on the y-axis is in y, cents. If Calypso is regulated to be efficient, consumer surplus sproducer surplus is , and the deadweight loss LRAC >>> Remember that the price given on the y-axis is in cents, and the quantity given on the x-axis is in millions of cubic feet 2 his ersec et a da () More Enter your answer in each of the answer boxes. 4) F9 F10 F11 F12 delete

Explanation / Answer

CS = 1/2 * (max price willing to pay - actual price)equilibrium quantity

CS = 1/2(10-6)*2 = 4

PS = 1/2 * (actual price - min price willing to accept) * quanity

PS = 1/2 * ( 6-2)*2 = 3

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