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me bn dne one P 40- Q And suppose that Mr India is monopoly supplier of lamb biryani in the township with a constant marginal cost: MC 10 a) On a clearly labeled diagram, sketch the demand, marginal revenue, and marginal cost curves and calculate and show the monopolists profit-maximising quantity (QM) and the price that will be charged in the market (PM). (4 marks) b) Calculate the consumer surplus and producer surplus at the monopoly equilibrium and the deadweight loss of the monopoly outcome compared to the socially efficient quantity and show these on your diagram. (3 marks) Finally, suppose that Mr Indias average total cost of producing 30 units of lamb biryani is $20 and of producing 60 units is $15. c) Calculate Mr Indias monopoly profit and explain what would happen if Mr India was forced to charge the socially optimal price for lamb biryani. (3 marks)

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Answer #1

At the oirt f 어& 2 122s nice Producen h lo FD AR МС bead wizt u Jorad to Lamb Biru/Qnǐ then ocial Lce o Mangin ATC

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