// LabMonopolySpecs.txt. 11/21/2020. import Foundation class LabMonopolySpecs { let strMonopolySpecs :String = """ `` Lab Specs // Demand function and curve slider specs 1000 3000 200 1200 // 0: Demand function constant -4.0 -1.0 .5 -2.0 // 1: Demand function price coefficient // Cost function slider specs 0 80000 10000 0 // 2: Fixed costs 100 500 100 200 // 3: Linear costs .0 .2 .02 .00 // 4: Quadratic costs // Quantity slider specs 0 1000 25 300 // 5: Quantity specs // Graph 0 -100 1000 700 // 6: Axis data range Quantity Price // 7: Axis names `` Prob Specs ` ******** Problem 0 Start // Title Screen 1 - Monopoly: Profit Maximizing Quantity // 0: Title // Initial demand and cost function specs 1200 -2.0 // 1: Constant and price coefficient 0 200 0.0 // 2: Fixed, variable, and quadratic costs // Slider visibility L L // 3: Demand: Constant and price coefficient L L L // 4: Cost function fixed, linear, quadratic parameters // Demand curve information visibility T T // 5: Price intercept, slope // Surplus and graph area visibility F F F F F // 6: "Quantity column, cons sur, prod sur, total sur, dwl // Graph visibility T // 7: Graph quantity line T T T T // 8: Points: Price, MR, MC, ATC // Set quantity to profit maximizing quantity F // 9: Profit maximizing quantity // Report optimize values T F F // 10: Profit max, zero profit, efficient ` Text Start // 11: Text `RED`BLDObjective:`BLD Illustrate the monopoly's profit maximizing quantity.`BLK Using the quantity scrollbar located below the graph, find the monopoly's profit maximizing quantity. Focus on the values of marginal revenue, marginal cost, and price. `BLDQuestion:`BLD What relationship between these values is important in determining the profit maximizing quantity? Check the total revenue, total cost, and profit checkboxes to illustrate these areas on the graph. ` Prob End ` ******** Problem 1 Start // Title Screen 2 - Monopoly: Consumer and Producer Surplus // 0: Title // Initial demand and cost function specs 1200 -2.0 // 1: Demand specs: Constant and price coefficient 0 200 0.0 // 2: Cost specs: Fixed, variable, and quadratic costs // Slider visibility L L // 3: Demand: Constant and price coefficient L L L // 4: Cost: Fixed, linear, quadratic // Demand curve information visibility T T // 5: Price intercept, slope // Surplus and graph area visibility T T T T T // 6: "Quantity column, cons sur, prod sur, total sur, dwl // Graph quantity line visibility T // 7: Graph quantity line // Graph points visibility T T T T // 8: Price, MR, MC, ATC // Set quantity to profit maximizing quantity T // 9: Profit maximizing quantity // Report optimize values T F F // 10: Profit max, zero profit, efficient ` Text Start // 11: Text `RED`BLDObjective:`BLD Illustrate how increasing production above the monopoly's profit maximizing quantity affects consumer and producer surplus.`BLK By default, the quantity equals the monopoly's profit maximizing quantity. Check the consumer surplus (Cons) checkbox beneath the Surpluses header located above this text box. Using the quantity scrollbar, increase the quantity. `BLDQuestion:`BLD Does consumer surplus increase, decrease, or remain the same? Using the quantity scrollbar, return the quantity to the profit maximizing quantity. Check the producer surplus (Prod) checkbox. Using the quantity scrollbar, increase the quantity. `BLDQuestion:`BLD Does producer surplus increase, decrease, or remain the same? ` Prob End ` ******** Problem 2 Start // Title Screen 3 - Monopoly: Total Surplus and Dead Weight Loss // 0: Title // Initial demand and cost function specs 1200 -2.0 // 1: Demand specs: Constant and price coefficient 0 200 0.0 // 2: Cost specs: Fixed, variable, and quadratic costs // Slider visibility L L // 3: Demand: Constant and price coefficient L L L // 4: Cost: Fixed, linear, quadratic // Demand curve information visibility T T // 4: Price intercept, slope // Surplus and graph area visibility T T T T T // 6: "Quantity column, cons sur, prod sur, total sur, dwl // Graph quantity line visibility T // 7: Graph quantity line // Graph points visibility T T T T // 8: Price, MR, MC, ATC // Set quantity to profit maximizing quantity T // 9: Profit maximizing quantity // Report optimize values F F T // 10: Profit max, zero profit, efficient ` Text Start // 11: Text `RED`BLDObjective:`BLD Illustrate how increasing production above the monopoly's profit maximizing quantity affects total surplus and dead weight loss.`BLK `BLDQuestion:`BLD How does increasing production above the monopoly's profit maximizing quantity affect `0x2022 consumer surplus? `0x2022 producer surplus? `BLDQuestion:`BLD What is the net effect? That is, how is total surplus affected? To answer this question, check the Total (total surplus) checkbox. Using the quantity scrollbar, Using the quantity scrollbar, increase production. `0x2022 What happens to total surplus? `0x2022 What quantity maximizes total surplus? Using the quantity scrollbar, return the quantity to the profit maximizing quantity. Check the dead weight loss (DWL) checkbox. Using the quantity scrollbar, increase the quantity. `0x2022 How is the dead weight loss affected? `0x2022 What quantity minimizes dead weight loss? `BLDClaim:`BLD Dead weight loss equals the difference between the maximum total surplus possible and the actual total surplus. Justify this claim. ` Prob End """ let strNaturalMonopolySpecs :String = """ `` Lab Specs // Demand function and curve slider specs 1000 3000 200 1200 // 0: Demand function constant -4.0 -1.0 .5 -2.0 // 1: Demand function price coefficient // Cost function slider specs 0 80000 10000 60000 // 2: Fixed costs 100 500 100 200 // 3: Linear costs .0 .2 .02 .00 // 4: Quadratic costs // Quantity slider specs 0 1000 25 300 // 5: Quantity specs // Graph 0 -100 1000 700 // 6: Axis data range Quantity Price // 7: Axis names `` Prob Specs ` ******** Problem 0 Start // Title Screen 1 - Natural Monopoly // 0: Title // Initial demand and cost function specs 1200 -2.0 // 1: Demand specs: Constant and price coefficient 60000 200 0.0 // 2: Cost specs: Fixed, variable, and quadratic costs // Slider visibility L L // 3: Demand: Constant and price coefficient L L L // 4: Cost: Fixed, linear, quadratic // Demand curve information visibility T T // 5: Price intercept, slope // Surplus and graph area visibility T T T T T // 6: "Quantity column, cons sur, prod sur, total sur, dwl // Graph quantity line visibility T // 7: Graph quantity line // Graph points visibility T T T T // 8: Price, MR, MC, ATC // Set quantity to profit maximizing quantity F // 9: Profit maximizing quantity // Report optimize values T F T // 10: Profit max, zero profit, efficient ` Text Start // 11: Text `RED`BLDObjective:`BLD Illustrate the problems that a natural monopoly create to a market economy.`BLK Using the quantity scrollbar, find the monopoly's profit maximizing quantity of output. `BLDQuestion:`BLD Is the profit maximizing quantity efficient? Check the total surplus (Total) checkbox and use the quantity scrollbar to find the efficient quantity, the quantity that maximizes total surplus. `BLDQuestion:`BLD Can the firm continue to operate at the efficient quantity? Explain. ` Prob End """ }