ZuoTi.Pro
Question

6. The market demand is given by p() 36 q and a monopolist has the following (a) If the monopolist charges a uniform price (fixed price per ut), how much (b) If the monopolist can perfectly price discriminate (first degree), how muclh (c) How much extra surplus does the monopolist capture by price discriminating cost function TC() 24q would she produce and what is the price? What is the profit? would she produce? What is her profit? instead of charging a fixed price?

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

a) Thu e uiựbrium ton difen for a monopolis t 2 -21 flo) P (4369 Nou, ut profit. = TT 2 138埒. Tjat q=12(9m) t9 (18-0) (9) = 162 = 216 ニ54 30 36 M c LLS uwplw 36 12 36 inatiem

0 0
Add a comment
Know the answer?
Add Answer to:
6. The market demand is given by p() 36 q and a monopolist has the following...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • 2. A monopolist serves a market with an aggregate demand function given by Q = 36...

    2. A monopolist serves a market with an aggregate demand function given by Q = 36 – 3P. The monopolist’s cost function is given by C(Q) = 2Q. a. How much profit can the monopolist generate with first-degree price discrimination if resale can be prevented? What is the associated deadweight loss relative to the competitive level of output? b. Suppose that the monopolist can partition its market into two separate submarkets. The demand function for submarket 1 is given by...

  • 7. A monopolist face a demand curve given by p() 100-q, its total costs are given...

    7. A monopolist face a demand curve given by p() 100-q, its total costs are given by TC() FC (a) For what values of FC w the monopolist make positive profits when it charges a uniform price? perfectly price discriminate? 100-q. For what values of FC will the monopolist make positive profits (b) For what values of FC will the monopolist make positive profits when it can (c) Suppose that there is one buyer on the market and his demand...

  • A monopolist faces a demand curve given by P = 200-10Q

    A monopolist faces a demand curve given by P = 200-10Q, where P is the price of the good and Q is the quantity demanded.  The marginal cost of production is constant and is equal to $60.  There are no fixed costs of production.A)   What quantity should the monopolist produce in order to maximize profit?B)   What price should the monopolist charge in order to maximize profit?C)   How much profit will the monopolist make?D)  What is the deadweight loss created by this monopoly...

  • 1. Let the market demand curve be P=1000 - 10Q. Assume the market is controlled by...

    1. Let the market demand curve be P=1000 - 10Q. Assume the market is controlled by a monopolist. Let fixed cost be $10,000 and Marginal Costs (MC)=20Q. a) What is the profit maximizing output? b) What is the monopolist's total revenue at the profit maximizing output? c) How much profit is the monopolist earning? d) Assume the government breaks up the monopolist in order to create a perfectly competitive market of identical firms. Assume the MC curve is now the...

  • Suppose a monopolist faces the following demand curve: P = 440 – 7Q. The long run marginal cost of production is constant and equal to $20, and there are no fixed costs. A) What is the monopolist’s...

    Suppose a monopolist faces the following demand curve: P = 440 – 7Q. The long run marginal cost of production is constant and equal to $20, and there are no fixed costs. A) What is the monopolist’s profit maximizing level of output? B) What price will the profit maximizing monopolist produce? C) How much profit will the monopolist make if she maximizes her profit? D) What would be the value of consumer surplus if the market were perfectly competitive? E)...

  • A natural monopolist faces the following demand curve: P = 202 - 5Q, its total cost is given by: ...

    A natural monopolist faces the following demand curve: P = 202 - 5Q, its total cost is given by: TC = 720 + 2Q (marginal cost is the slope of total cost). (a) If the government regulates the monopolist to charge a socially optimal price, what price will it charge and how many units will it sell? How much are the profit, consumer surplus and producer surplus? (b) If it is not a regulated monopolist, what is its profit maximizing...

  • Question 3 A monopolist faces a demand curve given by P = 105 - 30 where...

    Question 3 A monopolist faces a demand curve given by P = 105 - 30 where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production. Hint: To answer the following questions, it may be helpful to draw a graph! What quantity should the monopolist produce in order to maximize profit? What price should the monopolist charge in...

  • A natural monopolist faces the following demand curve: P = 409 - 2Q, its total cost...

    A natural monopolist faces the following demand curve: P = 409 - 2Q, its total cost is given by: TC = 12800 + 9Q (marginal cost is the slope of total cost). (a) If the government regulates the monopolist to charge a socially optimal price, what price will it charge and how many units will it sell? How much are the profit, consumer surplus and producer surplus? (b) If it is not a regulated monopolist, what is its profit maximizing...

  • Wenbo is a monopolist in the market for peppa pig figurines within the economics department. He...

    Wenbo is a monopolist in the market for peppa pig figurines within the economics department. He has the following information, where Q is the quantity of peppa pig figurines and P is the price: Market Demand: P = 300 – Q Marginal Cost: MC = 2Q Total Cost: TC = 2 + ?2 a. Suppose Wenbo cannot price discriminate. What is the profit maximizing price and quantity for Wenbo? What is Wenbo’s profit? What is Consumer Surplus(CS), Producer surplus(PS), and...

  • Microeconomics homework help? Using Figure 1, find the following values to two decimal places. 1. How...

    Microeconomics homework help? Using Figure 1, find the following values to two decimal places. 1. How many units will the monopolist want to produce? 2. What price will the monopolist charge? 3. How much profit will the monopolist earn? 4. What is the value for consumer surplus? 5. Now assuming that the monopolist can perfectly price discriminate, what is the value of consumer surplus? 6. Meow assuming that the monopolist can perfectly price discriminate, how much profit does the monopolist...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT