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7. A monopolist face a demand curve given by p() 100-q, its total costs are given...
6. The market demand is given by p() 36 q and a monopolist has the following...
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...
Assume that a monopolist faces a demand curve for its product given by: p=100−1q p =...
Assume that a monopolist faces a demand curve for its product given by: p=100−1q p = 100 - 1 q Further assume that the firm's cost function is: TC=570+14q T C = 570 + 14 q Using calculus and formulas (don't just build a table in a spreadsheet as in the previous lesson) to find a solution, how much output should the firm produce at the optimal price? Round the optimal quantity to the nearest hundredth before computing the optimal...
1. A monopolist has costs given by C = Q and faces demand curve P =...
1. A monopolist has costs given by C = Q and faces demand curve P = 12 - Q. a. Provide a labeled diagram that shows the monopolist's MC, AC, P and MR curves. b. Illustrate and calculate the profit maximizing level of output, price and profits. Calculate the elasticity of demand at the monopoly equilibrium price. Confirm that MR =P(1 + 1/n] d. illustrate and calculate the efficiency loss. e. Calculate the per-unit subsidy required to eliminate the efficiency...
Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost...
Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost is MC=20 and the Marginal Revenue is MR=100-2Q. 1. Find the monopolist Quantity and Price. 2.Find the Deadweight loss relative to the perfectly competitive outcome. 3. A. Calculate the welfare for the monopoly market, before and after the introduction of a price ceiling. B. Which scenario do the consumers prefer?
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...
4. A monopolist faces a market demand defined by P 20. There are no fixed costs. 100 (1/5)Q. Her ...
4. A monopolist faces a market demand defined by P 20. There are no fixed costs. 100 (1/5)Q. Her marginal cost is given by MC (a) Graph the market demand, the marginal revenue curve and the marginal cost curve, labeling the intercepts. (5 marks) (b) Calculate the monopolist's profit-maximizing price, output and profit. (5 marks) (c) Suppose that this market can now be divided into two separate markets and the supplier can discriminate between them. The demand curves are given...
Q4. A firm has a demand curve P = 6600 - 100. Its total costs are...
Q4. A firm has a demand curve P = 6600 - 100. Its total costs are TC = Q2. What are the optimal output, price and profits of the firm? Now assume that the firm is divided into two profit centres. One division manufactures the product at a total cost of TC = Q?, then transfers it to a selling division that faces the firm's demand curve. The selling division has no costs other than the transfer price and that...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The monopolist a constant marginal cost MC = 20 and an average cost AC = 20 + 800 a) In an unregulated market, what price will the monopolist charge? What is the DWL associated with this allocation? b) Suppose that a regulator imposes marginal cost regulation by setting P = 20. How many units will the monopoly sell? What is the DWL associated with this...
A monopolist faces a market demand curve given by
A monopolist faces a market demand curve given by Q=70-P a. If the monopolist can produce at constant average and marginal costs ofAC-MC-6, what output level will the monopolist choose to maximize profits? What is the price at this output level? What are the monopolist's profits? b. Assume instead that the monopolist has a cost structure where total costs are described by C(Q) = 0.25Q2 - 5Q + 300. With the monopolist facing the same market demand and marginal revenue, what price-quantity combination will be chosen now...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 –...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 – 4 and the following cost function TC = 4q+72 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 perfectly competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect com- petition. d) What are the equilibrium price and quantity when the monopolist produces as a...
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...
1. A monopolist has costs given by C = Q and faces demand curve P = 12 - Q. a. Provide a labeled diagram that shows the monopolist's MC, AC, P and MR curves. b. Illustrate and calculate the profit maximizing level of output, price and profits. Calculate the elasticity of demand at the monopoly equilibrium price. Confirm that MR =P(1 + 1/n] d. illustrate and calculate the efficiency loss. e. Calculate the per-unit subsidy required to eliminate the efficiency...
4. A monopolist faces a market demand defined by P 20. There are no fixed costs. 100 (1/5)Q. Her marginal cost is given by MC (a) Graph the market demand, the marginal revenue curve and the marginal cost curve, labeling the intercepts. (5 marks) (b) Calculate the monopolist's profit-maximizing price, output and profit. (5 marks) (c) Suppose that this market can now be divided into two separate markets and the supplier can discriminate between them. The demand curves are given...
Q4. A firm has a demand curve P = 6600 - 100. Its total costs are TC = Q2. What are the optimal output, price and profits of the firm? Now assume that the firm is divided into two profit centres. One division manufactures the product at a total cost of TC = Q?, then transfers it to a selling division that faces the firm's demand curve. The selling division has no costs other than the transfer price and that...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The monopolist a constant marginal cost MC = 20 and an average cost AC = 20 + 800 a) In an unregulated market, what price will the monopolist charge? What is the DWL associated with this allocation? b) Suppose that a regulator imposes marginal cost regulation by setting P = 20. How many units will the monopoly sell? What is the DWL associated with this...
Consider a situation where a monopolist faces the following inverse market demand curve p= 100 – 4 and the following cost function TC = 4q+72 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 perfectly competitive? c) Calculate the Consumer Surplus, Producer Surplus and Welfare levels under perfect com- petition. d) What are the equilibrium price and quantity when the monopolist produces as a...
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