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Micro: Perfect and Monopolistic Competition

  1. May 5, 2012 #1
    Hello guys,

    There is something that I should study but is not on my book.

    I am trying to find other explanations online but I can't.

    So, it's pretty much to calculate quantity and price for perfect competition and monopolistic competition.

    Then, consumer surplus for perfect competition and monopolistic competition.
    Then, ∏ (profit) for both,
    Then, deadweight loss for both.

    Then, I should graph it. Take all the numbers, the information I got, and have them in one graph.

    But I am lost. This is one of the examples my prof gave in class. I would like someone to give me, PLEASE, a better and easier explanation.


    It all starts with P = 12 - 2Q MC = 4
     
    Last edited: May 5, 2012
  2. jcsd
  3. May 6, 2012 #2

    Pyrrhus

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    Homework Helper

    Here's a hint the MC is the supply function.
     
  4. May 6, 2012 #3
    I know that for perfect competition, P = MC
    So,
    12 - 2q = 4
    q = 4
    p = 4

    For monopolistic competition MR = MC

    Now, how to find MR?
     
  5. May 6, 2012 #4
    Never mind. I already know how to solve it. Thanks.
     
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