6. (20 pts) You are a monopolist facing inverse demand for your product given by p...
6(20 pts) You are a monopolist facing inverse demand for your product given by P-120-20 and you have constant marginal cost given by MC-30 (a) (10 pts) Assume you can charge 2 different prices based on quantity purchased. What are the producer's suplus-maximizing levels of these prices? (b) (10 pts) Show graphically how much more producer's surplus vou make by setting 2 prices instead of 1 in this market
You are a monopolist facing inverse demand for your product given by P = 120 - 2Q and you have constant marginal cost given by MC = 30 A. Assume you can charge 2 different prices based on the quantity purchased. What are the producers surplus maximizing levels of these prices? B. Show graphically how much more producer's surplus you make by setting 2 prices instead of 1 in this market.
Can you answer A & B? Thanks! 6. (20 pts) You are a monopolist facing inverse demand for your product given by p-120-20 and you have constant marginal cost given by MC 30 (a) (10 pts) Assume you can charge 2 different prices based on quantity purchased. What are the producer's surplus-maximizing levels of these prices? (b) (10 pts) Show graphically how much more producer's surplus you make by setting 2 prices instead of 1 in this market.
You are a monopolist in a market with an inverse demand curve of: P=10-Q. Your marginal revenue is: MR(Q)=10-2Q. Your cost function is: C(Q)=2Q, and your marginal cost of production is: MC(Q)=2. a) Solve for your profit- maximizing level of output, Q*, and the market price, P*. b) How much profit do you earn?
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal cost is MC=100Q+100, where Q is thousands of units. a). what price would the monopolist charge to maximize profits and how many units will the monopolist sell? (hint, recall that the slope of the MARGINAL Revenue is twice as steep as the inverse demand curve. b). at the profit-maximizing price, how much profit would the monopolist earn? c). find consumer surplus and Producer surplus...
The demand function facing the monopolist is given by D(p) 10/p, and the monopolist has positive marginal cost of c. What is the profit-maximizing level of output? The demand function facing the monopolist is given by D(p) 10/p, and the monopolist has positive marginal cost of c. What is the profit-maximizing level of output?
A monopolist sells in two markets. The demand curve for her product is given by p1 = 120 y1 in the first market; and p2 = 105 y2 2 in the second market, where yi is the quantity sold in market i and pi is the price charged in market i. She has a constant marginal cost of production, c = 10, and no fixed costs. She can charge different prices in the two markets. 1) Suppose the monopolist charges...
Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700 9Q The firm's total cost is given by C() 11,000+9000 (a) Show your work in solving for the firm's profit-maximizing quantity and price. What is the maximized value of profit? (b) Plot this firm's revenue and total cost functions. Illustrate the profit-maximizing quantity on this graph, as well as the firm's maximized profit level (c) Now plot this firm's inverse demand, marginal revenue, and marginal cost curves....
A monopolist is facing the following demand curve P = 50 − 5Q. The monopolist has the following marginal cost MC = 10. The monopolist knows exactly the willingness to pay of each individual consumer and charge consumers individual prices. Calculate the deadweight loss in this case. (a) DWL=0 (b) DWL=10 (c) DWL=5 (d) None of the above.
Consider a monopolist firm facing an inverse demand curve given by P(Q) 2700-9Q. The firm's total cost is given by c(Q) 11,000+900Q (a) Show your work in solving for the firm's profit-maximizing quantity and price. What is (b) Plot this firm's revenue and total cost functions. Illustrate the profit-maximizing quantity (c) Now plot this firm's inverse demand, marginal revenue, and marginal cost curves. Il- the maximized value of profit? on this graph, as well as the firm's maximized profit level....