A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are:
What are price, output, profits, marginal revenues, and deadweight loss if the monopolist can price discriminate? (round all answers to two decimal places)
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A monopolist is deciding how to allocate output between two
geographically separated markets (East Coast and...
A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and...
A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demands for the two markets are: Q1 = 15 - P1 Q2 = 12.5 – 0.5 P2 The monopolist’s total cost is C = 5 + 3(Q1 + Q2 ). What are the prices, outputs, profits in each market if the monopolist can price discriminate? Check that the profit maximizing price and its elasticity of demand have the following relation between markets: P1...
Assignment I Name: Due date: Jan.29 ID: 1. (3 points) A monopolist is deciding how to...
Assignment I Name: Due date: Jan.29 ID: 1. (3 points) A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demands for the two markets are: -15-P o,-12.5-05 P The monopolist's total cost is C-5+3Q,Q2). What are the prices, outputs, profits in each market if the monopolist can price discriminate? Check that the profit maximizing price and its elasticity of demand have the following relation between markets: (Elasticity: E (dQ (dP/P) (dQdP P/Q))
2) A monopolist is deciding on the quantity of output to produce in two different countries....
2) A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: Q1 = 12 – P1 Q2 = 12 – 2P2 • ATC = MC = $4 a. (10) What are price, output, and profits, if the monopolist can price discriminate • b. (10) What are price, output, and profits, if the law prohibits charging different prices in the two countries? • c. (5) Suppose that the monopolist could...
A monopolist is deciding on the quantity of output to produce in two different countries. Demand...
A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: Q1=12-P1 Q2 = 12 − 2*P2 ATC = MC = $4 a. (10) What are price, output, and profits, if the monopolist can price discriminate b. (10) What are price, output, and profits,if the law prohibits charging different prices in the two countries? c. (5) Suppose that the monopolist could adopt a two-part tariff, what pricing policy should the...
2) A monopolist is deciding on the quantity of output to produce in two different countries....
2) A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: . Q1 12 - P1 Q2 12 – 2P2 ATC = MC = $4 • a. (10) What are price, output, and profits, if the monopolist can price discriminate • b. (10) What are price, output, and profits,if the law prohibits charging different prices in the two countries? • c. (5) Suppose that the monopolist could adopt a...
2) A monopolist is deciding on the quantity of output to produce in two different countries....
2) A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: . Q1 = 12 – P1 Q2 = 12 – 2P2 ATC = MC = $4 a. (10) What are price, output, and profits, if the monopolist can price discriminate • b. (10) What are price, output, and profits, if the law prohibits charging different prices in the two countries? c. (5) Suppose that the monopolist could adopt...
2) A monopolist is deciding on the quantity of output to produce in two different countries....
2) A monopolist is deciding on the quantity of output to produce
in two different countries. Demand for the two countries are:
LaTeX: Q_1=12-P_1Q 1 = 12 − P 1 LaTeX: Q_2=12-2P_2Q 2 = 12 − 2 P 2
ATC = MC = $4 a. (10) What are price, output, and profits, if the
monopolist can price discriminate b. (10) What are price, output,
and profits,if the law prohibits charging different prices in the
two countries? c. (5) Suppose that...
A monopolist is deciding on the quantity of output to produce in two different countries. Demand...
A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: Q1=12-P1 Q2=12-2P2 Q2 = 12 − 2P2 ATC = MC = $4 a. (10) What are price, output, and profits, if the monopolist can price discriminate b. (10) What are price, output, and profits,if the law prohibits charging different prices in the two countries? c. (5) Suppose that the monopolist could adopt a two-part tariff, what pricing policy should the...
A monopolist is deciding on the quantity of output to produce in two different countries. Demand...
A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: ATC = MC = $4 Q1 = 12-P1 Q2=12-2p2 a. What are price, output, and profits, if the monopolist can price discriminate? b. What are price, output, and profits,if the law prohibits charging different prices in the two countries? c. Suppose that the monopolist could adopt a two-part tariff, what pricing policy should the firm follow? How do the...
Question 2 25 pts . . 2) A monopolist is deciding on the quantity of output...
Question 2 25 pts . . 2) A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: • Q1 = 12 - P1 Q2 = 12 - 2P2 ATC = MC = $4 . a. (10) What are price, output, and profits, if the monopolist can price discriminate . b. (10) What are price, output, and profits,if the law prohibits charging different prices in the two countries? • C....
Assignment I Name: Due date: Jan.29 ID: 1. (3 points) A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demands for the two markets are: -15-P o,-12.5-05 P The monopolist's total cost is C-5+3Q,Q2). What are the prices, outputs, profits in each market if the monopolist can price discriminate? Check that the profit maximizing price and its elasticity of demand have the following relation between markets: (Elasticity: E (dQ (dP/P) (dQdP P/Q))
2) A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: Q1 = 12 – P1 Q2 = 12 – 2P2 • ATC = MC = $4 a. (10) What are price, output, and profits, if the monopolist can price discriminate • b. (10) What are price, output, and profits, if the law prohibits charging different prices in the two countries? • c. (5) Suppose that the monopolist could...
2) A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: . Q1 12 - P1 Q2 12 – 2P2 ATC = MC = $4 • a. (10) What are price, output, and profits, if the monopolist can price discriminate • b. (10) What are price, output, and profits,if the law prohibits charging different prices in the two countries? • c. (5) Suppose that the monopolist could adopt a...
2) A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: . Q1 = 12 – P1 Q2 = 12 – 2P2 ATC = MC = $4 a. (10) What are price, output, and profits, if the monopolist can price discriminate • b. (10) What are price, output, and profits, if the law prohibits charging different prices in the two countries? c. (5) Suppose that the monopolist could adopt...
2) A monopolist is deciding on the quantity of output to produce
in two different countries. Demand for the two countries are:
LaTeX: Q_1=12-P_1Q 1 = 12 − P 1 LaTeX: Q_2=12-2P_2Q 2 = 12 − 2 P 2
ATC = MC = $4 a. (10) What are price, output, and profits, if the
monopolist can price discriminate b. (10) What are price, output,
and profits,if the law prohibits charging different prices in the
two countries? c. (5) Suppose that...
Question 2 25 pts . . 2) A monopolist is deciding on the quantity of output to produce in two different countries. Demand for the two countries are: • Q1 = 12 - P1 Q2 = 12 - 2P2 ATC = MC = $4 . a. (10) What are price, output, and profits, if the monopolist can price discriminate . b. (10) What are price, output, and profits,if the law prohibits charging different prices in the two countries? • C....
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