![[20] A monopolist with cost function c(Q) demand functions are given by. faces a consumer whose Q1=20-P and Q2-40-2P. (a) [5] Suppose the monopolist cannot engage in any price discrimination. Find the firms optimal pricing strategy. Calculate the firms Lerner index. come) associated with this pricing strategy, if any? optimal third-degree price-discrimination strategy. Which consumer is (b) [5] What is the deadweight loss (relative to the competitive market out- (c) [5] Now, suppose price discrimination is possible. Find the monopolists more inelastic at the optimal solution? (d) [5) What information is required for the monopolist to be able to use discrimination? Give a real-life example where third- third-degree price degree price discrimination is used. 0] Consider an Edgeworth box economy where preferences and endowmen e given by r-(4,20. t a Walra](http://img.homeworklib.com/questions/8e747cc0-7268-11ea-bfad-c9081fecf4f3.png?x-oss-process=image/resize,w_560)
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Microeconomics
[20] A monopolist with cost function c(Q) demand functions are given by. faces a consumer...
1. [20] A monopolist with cost function c(Q) = 2 faces a consumer whose demand functions...
1. [20] A monopolist with cost function c(Q) = 2 faces a consumer whose demand functions are given by. 01 20 P and Q2 40 2P. (a) 5] Suppose the monopolist cannot engage in any price discrimination. Find the firm's optimal pricing strategy. Calculate the firm's Lerner index. (b) 15) What is the deadweight loss (relative to the competitive market out- come) associated with this pricing strategy, if any? (c) 15) Now, suppose price discrimination is possible. Find the monopolist's...
1. (0 A monopolist with cost function e(Q)-jo* faces a consumer whose demand functions are given...
1. (0 A monopolist with cost function e(Q)-jo* faces a consumer whose demand functions are given by (a) [51 Suppose the monopolist cannot engage in any price discrimination. (b) [5) What is the deadweight loss (relative to the competitive market out (c) [5] Now, suppose price discrimination is possible. Find the monopolist's (d) [51 What information is required for the monopolist to be able to use Qi=20-P and Q-40-2P. Find the firm's optimal pricing strategy. Calculate the firm's Lerner index....
2. Consider a market with one firm. The firm's cost function is c(g)-2, and the market...
2. Consider a market with one firm. The firm's cost function is c(g)-2, and the market demand is Q 1000-P (a) Suppose the monopolist does not exereise any market power and behaves like a competitive firm. Find the equilibrium price, the quantity produced and the firm's profit. (b) Suppose the monopolist exercises market power but does not price dis- criminate (that is, the firm uses MR MC pricing strategy). Find the price the firm charges, the quantity produced, and the...
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...
Suppose that a monopolist faces the following costs and demand for its product: A. Complete the...
Suppose that a monopolist faces the following costs and demand
for its product:
A. Complete the table above. (Draw your table on a piece of
paper, take a picture with your phone and then attach the image to
your answer here.)
B. Given that the monopolist wants to maximise profits, what
price will it charge, and how many units will it produce?
C. Suppose that the monopolist is able to engage in first degree
(perfect) price discrimination. How many units...
Suppose a monopolist faces consumer demand given by P 600 1Q with a constant marginal cost...
Suppose a monopolist faces consumer demand given by P 600 1Q with a constant marginal cost of $60 per unit (where marginal cost equals average total cost. asssume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output...
Suppose a monopolist faces consumer demand given by P = 400 - 10 with a constant...
Suppose a monopolist faces consumer demand given by P = 400 - 10 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of $ (Enter your response rounded as a whole number.) Correspondingly, consumer surplus is $0. However, if the firm were to practice price discrimination such that consumer surplus becomes profit,...
Suppose a monopolist faces consumer demand given by P 400-5Q with a constant marginal cost of $20 per unit (where margi...
Suppose a monopolist faces consumer demand given by P 400-5Q with a constant marginal cost of $20 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs) If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant...
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...
Please answer me in detail. Thank you. Question 9 Suppose that a monopolist faces a demand curve given by P 120-2Q. A m...
Please answer me in detail. Thank you.
Question 9 Suppose that a monopolist faces a demand curve given by P 120-2Q. A monopolist producing only one product has two plants with the following marginal cost functions: MC1 20+2Q1 and MC2-10+502, where MCi and MC2 are the marginal costs in plants 1 and 2, and Q1 and Q2 are the levels of output in each plant, respectively. (a) Find the monopolist's optimal total output (quantity) and price. b) Find the optimal...
1. [20] A monopolist with cost function c(Q) = 2 faces a consumer whose demand functions are given by. 01 20 P and Q2 40 2P. (a) 5] Suppose the monopolist cannot engage in any price discrimination. Find the firm's optimal pricing strategy. Calculate the firm's Lerner index. (b) 15) What is the deadweight loss (relative to the competitive market out- come) associated with this pricing strategy, if any? (c) 15) Now, suppose price discrimination is possible. Find the monopolist's...
1. (0 A monopolist with cost function e(Q)-jo* faces a consumer whose demand functions are given by (a) [51 Suppose the monopolist cannot engage in any price discrimination. (b) [5) What is the deadweight loss (relative to the competitive market out (c) [5] Now, suppose price discrimination is possible. Find the monopolist's (d) [51 What information is required for the monopolist to be able to use Qi=20-P and Q-40-2P. Find the firm's optimal pricing strategy. Calculate the firm's Lerner index....
2. Consider a market with one firm. The firm's cost function is c(g)-2, and the market demand is Q 1000-P (a) Suppose the monopolist does not exereise any market power and behaves like a competitive firm. Find the equilibrium price, the quantity produced and the firm's profit. (b) Suppose the monopolist exercises market power but does not price dis- criminate (that is, the firm uses MR MC pricing strategy). Find the price the firm charges, the quantity produced, and the...
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 that a monopolist faces the following costs and demand
for its product:
A. Complete the table above. (Draw your table on a piece of
paper, take a picture with your phone and then attach the image to
your answer here.)
B. Given that the monopolist wants to maximise profits, what
price will it charge, and how many units will it produce?
C. Suppose that the monopolist is able to engage in first degree
(perfect) price discrimination. How many units...
Suppose a monopolist faces consumer demand given by P 600 1Q with a constant marginal cost of $60 per unit (where marginal cost equals average total cost. asssume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output...
Suppose a monopolist faces consumer demand given by P = 400 - 10 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of $ (Enter your response rounded as a whole number.) Correspondingly, consumer surplus is $0. However, if the firm were to practice price discrimination such that consumer surplus becomes profit,...
Suppose a monopolist faces consumer demand given by P 400-5Q with a constant marginal cost of $20 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs) If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant...
Please answer me in detail. Thank you.
Question 9 Suppose that a monopolist faces a demand curve given by P 120-2Q. A monopolist producing only one product has two plants with the following marginal cost functions: MC1 20+2Q1 and MC2-10+502, where MCi and MC2 are the marginal costs in plants 1 and 2, and Q1 and Q2 are the levels of output in each plant, respectively. (a) Find the monopolist's optimal total output (quantity) and price. b) Find the optimal...
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