The industry demand curve for a particular market is: Q = 1800 - 200P. The indus

Question

The industry demand curve for a particular market is: Q = 1800 - 200P. The industry exhibits constant long run average cost at all levels of output, regardless of the market structure. Long run average cost is a constant $1.50 per unit of output. Calculate (1) market output, (2) price, (3) consumer surplus, (4) producer surplus (profit), and (5) the sum of producer plus consumer surplus for each of the scenarios below. a. Perfect Competition b. A monopolist whose output is where marginal revenue is equal to marginal cost. c. A monopolist establishes the profit maximizing two-part tariff. For these three scenarios, show your work and fill out the following table: Scenario Q P Consumer surplus Producer surplus Welfare = Consumer + producer surplus a. b. c. d. Finally, which of the three pricing schemes is best for consumers? Producers? Society? Explain.

Explanation / Answer

1) you have to use Q/P = 1.5 2) then find P i know these 2 parts , may help you

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