QUESTION 13 What is the deadweight loss, if Facebook acts as a single-price monopolist? QUESTION 14 In reality, Facebook charges different companies different amounts for ad campaigns, often...


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QUESTION 13<br>What is the deadweight loss, if Facebook acts as a single-price<br>monopolist?<br>QUESTION 14<br>In reality, Facebook charges different companies different<br>amounts for ad campaigns, often systematically lowering the price<br>of the ad campaign until the firm purchases. If Facebook is able to<br>perfectly price discriminate, how many ad campaigns will it sell?<br>

Extracted text: QUESTION 13 What is the deadweight loss, if Facebook acts as a single-price monopolist? QUESTION 14 In reality, Facebook charges different companies different amounts for ad campaigns, often systematically lowering the price of the ad campaign until the firm purchases. If Facebook is able to perfectly price discriminate, how many ad campaigns will it sell?
Facebook is the biggest seller of advertising space in the social<br>media market (Instagram is also a major seller, but it is owned by<br>Facebook). Assume that Facebook is a monopolist and is<br>illustrated by the graph below.<br>Use the below graph for #9 - 16.<br>P ($)<br>18<br>17<br>16<br>15<br>14<br>|1, 14.0<br>13<br>12<br>11<br>10<br>7<br>ATC<br>34, 1.4<br>4<br>|16, 1.8<br>D<br>3<br>31, 1.4<br>17, 1.8<br>2<br>MC<br>1<br>567 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34<br>Q (millions)<br>-1 0 1 2 3<br>-2<br>15, 1.9<br>MR<br>-3<br>What is the quantity of ads that Facebook sells?<br>

Extracted text: Facebook is the biggest seller of advertising space in the social media market (Instagram is also a major seller, but it is owned by Facebook). Assume that Facebook is a monopolist and is illustrated by the graph below. Use the below graph for #9 - 16. P ($) 18 17 16 15 14 |1, 14.0 13 12 11 10 7 ATC 34, 1.4 4 |16, 1.8 D 3 31, 1.4 17, 1.8 2 MC 1 567 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 Q (millions) -1 0 1 2 3 -2 15, 1.9 MR -3 What is the quantity of ads that Facebook sells?

Jun 09, 2022
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