Jaina's Shoes, INC. (JS) is a monopolist in the footwear industry. Its total cost function C(⋅)...
Jaina's Shoes, INC. (JS) is a monopolist in the footwear industry. Its total cost function C(⋅) is given by the quadratic function of output C(Q) =100 – 5Q + Q2. The inverse demand function for shoes P(⋅) is given by the linear function P(Q) = 55 – 2Q. Note that the marginal cost C′(Q) is not constant. (Also, it happens to be negative for 0 ≤ Q < 2.5.)
(A) Compute the consumer surplus CS^c and producer surplus PS^c generated in the market for shoes if JS acted like a perfect competitor.
(B) Compute the deadweight loss resulting from the market power exercised by JS.
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Jaina's Shoes, INC. (JS) is a monopolist in the footwear
industry. Its total cost function C(⋅)...
tdSDoorstope, INC.(DD is a monopolist in the doorstop industry its total cost function 1s oiven by...
tdSDoorstope, INC.(DD is a monopolist in the doorstop industry its total cost function 1s oiven by the quadratic function of output Cla) 100-5Q+. The inverse demand function for doorstops Pis given by the linear function PIQ)-55-2Q. Nte that the margnal cost C'(Q) is not constant. (Also, it happens to be negative for 0 s Q <2 How much consumer surplus CS and producer surplus PSM and total surplus does DD generate by its profit-maximizing plan? (d) Find the profit-maximizing rate...
Exercise 5. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is...
Exercise 5. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C 100 - 5Q+ Q, and inverse demand is P 55 - 2Q a. What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b. What would output be if DD acted as a perfect competitor and set MC P? What profit and consumer surplus would then be generated? c. What...
Exercise 5. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is...
Exercise 5. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 –5Q+Q?, and inverse demand is P= 55 – 20. a. What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b. What would output be if DD acted as a perfect competitor and set MC = P? What profit and consumer surplus would then be generated? c. What...
orstops, INC. (DD) is a monopolist in the doorstop industry. ts total cost function the quadratic...
orstops, INC. (DD) is a monopolist in the doorstop industry. ts total cost function the quadratic function of output C(Q) -100-5Q+ Q?. The inverse demand for doorstops Pl) is given by the linear function P/Q) 55-2Q. Note that the marginal C) is not constant. (Also, it happens to be negative for 0s Q <2.5.) ft-maximizing problem for DD, and determine its optimal rate of output (a) Write down the for С" (b) Find the profit-maximizing price set by DD, PM...
Suppose that market demand for a good is given by QD(P) = 10−P. The total cost...
Suppose that market demand for a good is given by
QD(P) = 10−P. The total cost of production is TC(Q) =
2Q2. Determine quantity QM and price
PM that a monopolist will choose in this market.
Calculate consumer surplus (CS), producer surplus (PS), and the
deadweight loss (DWL) resulting from the monopoly. Graphical
Solution would suffice!
1) (25 points) Suppose that market demand for a good is given by Q”(P) - 10-P. The total cost of production is TCQ) =...
MR = 100 - 2q MC = 4 + 2q Under Perfect Competition EQ Price = 68 EQ Quantity = 32 CS = 512 PS = 1024 TW = 1536 Under M...
MR = 100 - 2q
MC = 4 + 2q
Under Perfect Competition
EQ Price = 68
EQ Quantity = 32
CS = 512
PS = 1024
TW = 1536
Under Monopoly
EQ Quantity = 24
EQ Price = 76
Now ...
Calculate the Consumer Surplus, Producer Surplus and Welfare
levels under monopoly.
How much deadweight loss does the monopolist create?
What could the government do to regulate the monopolist?
Consider a situation where a monopolist faces the following inverse...
A monopolist faces inverse demand P = on TC(Q) = cQ. (a) Find the optimal price,...
A monopolist faces inverse demand P = on TC(Q) = cQ. (a) Find the optimal price, P, and quantity, QM (b) Solve for the monopolist's optimal profits, TM (c) Graph the equilibrium and show consumer surplus, producer surplus and deadweight loss. Be 150 -3Q and total cost functi careful with the marginal cost curve. (d) Compute CS and PS. These will be functions of the cost parameter c. (e) Compute DWL. Similarly, it will be functions of the cost parameter...
Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 –...
Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 – 90Q)/100 and long run total and marginal cost given by LRTC = 5Q + Q2 + 40 (Note: The answer to this question must be hand-written.): a) Find the equation of the marginal revenue curve corresponding to the market demand curve. b) Find the equation for the marginal cost function. c) Find the profit-maximizing quantity of output for the monopoly and the price the...
Suppose a profit maximizing monopolist has total cost and marginal cost as follow:
Suppose a profit maximizing monopolist has total cost and marginal
cost as follow:1. Suppose a profit-maximizing monopolist has total cost and marginal cost as follow: \(\mathrm{TC}=0.1 Q^{2}+Q+10\) and \(\mathrm{MC}=0.2 Q+1\). It faces the demand curve \(\mathrm{Q}=35-5^{\mathrm{P}} .(35\) points \()\)a) What are the price, output, and profit for this monopolist?b) Carefully draw the diagram that illustrates your answers.c) What are the equilibrium price, output, and total profit if this is a perfectly competitive market?d) Compare the results between monopoly and perfect...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132 - 2a p and the following cost function TС — 12g + 2q* a) Derive the marginal revenue and marginal cost functions b) What are the equilibrium price and quantity if this market behaved as if it were competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect petition d) What are the equilibrium price and quantity when the monopolist produces...
tdSDoorstope, INC.(DD is a monopolist in the doorstop industry its total cost function 1s oiven by the quadratic function of output Cla) 100-5Q+. The inverse demand function for doorstops Pis given by the linear function PIQ)-55-2Q. Nte that the margnal cost C'(Q) is not constant. (Also, it happens to be negative for 0 s Q <2 How much consumer surplus CS and producer surplus PSM and total surplus does DD generate by its profit-maximizing plan? (d) Find the profit-maximizing rate...
Exercise 5. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C 100 - 5Q+ Q, and inverse demand is P 55 - 2Q a. What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b. What would output be if DD acted as a perfect competitor and set MC P? What profit and consumer surplus would then be generated? c. What...
Exercise 5. Dayna's Doorstops, Inc. (DD) is a monopolist in the doorstop industry. Its cost is C = 100 –5Q+Q?, and inverse demand is P= 55 – 20. a. What price should DD set to maximize profit? What output does the firm produce? How much profit and consumer surplus does DD generate? b. What would output be if DD acted as a perfect competitor and set MC = P? What profit and consumer surplus would then be generated? c. What...
orstops, INC. (DD) is a monopolist in the doorstop industry. ts total cost function the quadratic function of output C(Q) -100-5Q+ Q?. The inverse demand for doorstops Pl) is given by the linear function P/Q) 55-2Q. Note that the marginal C) is not constant. (Also, it happens to be negative for 0s Q <2.5.) ft-maximizing problem for DD, and determine its optimal rate of output (a) Write down the for С" (b) Find the profit-maximizing price set by DD, PM...
Suppose that market demand for a good is given by
QD(P) = 10−P. The total cost of production is TC(Q) =
2Q2. Determine quantity QM and price
PM that a monopolist will choose in this market.
Calculate consumer surplus (CS), producer surplus (PS), and the
deadweight loss (DWL) resulting from the monopoly. Graphical
Solution would suffice!
1) (25 points) Suppose that market demand for a good is given by Q”(P) - 10-P. The total cost of production is TCQ) =...
MR = 100 - 2q
MC = 4 + 2q
Under Perfect Competition
EQ Price = 68
EQ Quantity = 32
CS = 512
PS = 1024
TW = 1536
Under Monopoly
EQ Quantity = 24
EQ Price = 76
Now ...
Calculate the Consumer Surplus, Producer Surplus and Welfare
levels under monopoly.
How much deadweight loss does the monopolist create?
What could the government do to regulate the monopolist?
Consider a situation where a monopolist faces the following inverse...
A monopolist faces inverse demand P = on TC(Q) = cQ. (a) Find the optimal price, P, and quantity, QM (b) Solve for the monopolist's optimal profits, TM (c) Graph the equilibrium and show consumer surplus, producer surplus and deadweight loss. Be 150 -3Q and total cost functi careful with the marginal cost curve. (d) Compute CS and PS. These will be functions of the cost parameter c. (e) Compute DWL. Similarly, it will be functions of the cost parameter...
Suppose a profit maximizing monopolist has total cost and marginal
cost as follow:1. Suppose a profit-maximizing monopolist has total cost and marginal cost as follow: \(\mathrm{TC}=0.1 Q^{2}+Q+10\) and \(\mathrm{MC}=0.2 Q+1\). It faces the demand curve \(\mathrm{Q}=35-5^{\mathrm{P}} .(35\) points \()\)a) What are the price, output, and profit for this monopolist?b) Carefully draw the diagram that illustrates your answers.c) What are the equilibrium price, output, and total profit if this is a perfectly competitive market?d) Compare the results between monopoly and perfect...
3. Monopoly Consider a situation where a monopolist faces the following inverse market demand curve 132 - 2a p and the following cost function TС — 12g + 2q* a) Derive the marginal revenue and marginal cost functions b) What are the equilibrium price and quantity if this market behaved as if it were competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect petition d) What are the equilibrium price and quantity when the monopolist produces...
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