Daily Review -- Monopoly

It's getting close the the AP test on Microeconomics.  Let's do a quick review of monopoly.  1) What is the price and quantity for this firm?  2) What is the approximate price a perfect competitor would charge? 3) If the firm were regulated at the "Fair-Return Price", what would be that price? 4) What is the approximate amount of consumers' surplus?

Answers: 1) Price is 35, Quantity is 8; 2) about $30; 3)$25; 4) $100

This graph is from my Microeconomics coloring book.  If you think that color heightens learning, then color the area of profit green, the area of total cost red.


(Editor's note:  Two weeks ago my mock trial team competed in the area 9 regional.  We did not qualify for state.  As their coach, I can see several areas where we could have done better.  But, I am devastated.  From December to March 17 we worked relentlessly.  At the conclusion of the regional tournament, I began to wonder how game theory could be used in mock trial.  Specifically, best response.  Since March 17 I have spent most of my free time studying game theory.  As a result, I have been posting less regularly than I want to.  In the future, some of my posts will be about mock trial and reaction functions to mock trial.  Please bear with me as I try to build my skill set.)