Suppose the demand functions facing a wireless telephone monopolist are QdL=90−200P for each low-demand consumer and...
Suppose the demand functions facing a wireless telephone monopolist are QdL=90−200P for each low-demand consumer and QdH=120−200P for each high-demand consumer, where P is the per-minute price in dollars. The marginal cost is $0.15 per minute. Suppose the monopolist offers a menu of two-part tariff plans, with one plan intended for each type of consumer. Suppose too that for any per-minute price PL in the low-demand plan, the fixed fee in the low-demand plan leaves a low-demand consumer with zero surplus; that the number of minutes in the low-demand plan is capped at the number of minutes desired by a low-demand consumer at that plan's per-minute price; and that the high-demand plan has a per-minute price of $0.15 per minute and a fixed fee that leaves the high-demand consumer approximately indifferent between the low- and high-demand plans. Suppose that there are 100 high-demand consumers and 300 low-demand consumers. Will the monopolist's profit be higher when the per-minute price in the low-demand plan is $0.20 or $0.25? Instructions: Round your answers to 2 decimal places as needed.
a. Suppose the monopolist's per-minute price in the low-demand plan is $0.20. Profit = $ .
b. Now suppose the monopolist's per-minute price in the low-demand plan is $0.25. Profit = $ .
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Suppose the demand functions facing a wireless telephone
monopolist are QdL=90−200P for each low-demand consumer and...
Suppose the demand functions facing wireless telephone monopolists are: Here is the equation again in case...
Suppose the demand functions facing wireless telephone
monopolists are:
Here is the equation again in case it is hard to read:
Q Low = 400 - 100 P
Q High = 140 - 100 P
Q£ =40-100F for each low-demand consumer and QÅ=140-100F for each high-demand consumer, where P is the per-minute price in dollars. The marginal cost is $0.20 per minute. Suppose the monopolist offers only a single two-part tariff. Instructions: Round your answers to 2 decimal places as...
1. Suppose that demand is given by P=100-Q, marginal revenue is MR=100-2Q, and marginal cost (and...
1. Suppose that demand is given by P=100-Q, marginal revenue is MR=100-2Q, and marginal cost (and average cost) is constant at 20. a. What single price will maximize a monopolist's profit? b. What will be the prices and quantity under two-part pricing? It involves a lump sum fee (e.g., membership fee) equal to the consumer surplus at competitive prices and user fees (i.e., unit price) equal to the competitive price. c. Now the monopolist has another group of consumers whose...
1) All 20 consumers are alike and each has a demand curve for a monopolist's product...
1) All 20 consumers are alike and each has a demand curve for a monopolist's product of p=12-2q. The cost of production C(Q)=Q. Let the monopolist charge a price of $r per unit purchased and a subscription fee of $F that must be paid by each producer. Find the r and F that maximize profits. a) What is r? b) What is F? c) What is the maximum profit the monopolist can earn in this market? (pi) 2)All 200 consumers...
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,...
1. The city's Water and Sewer provider is a regulated natural monopoly that has a cost function, ...
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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...
In a market of a certain good, there is a monopolist who has a constant marginal...
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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...
Suppose the demand functions facing wireless telephone
monopolists are:
Here is the equation again in case it is hard to read:
Q Low = 400 - 100 P
Q High = 140 - 100 P
Q£ =40-100F for each low-demand consumer and QÅ=140-100F for each high-demand consumer, where P is the per-minute price in dollars. The marginal cost is $0.20 per minute. Suppose the monopolist offers only a single two-part tariff. Instructions: Round your answers to 2 decimal places as...
1. Suppose that demand is given by P=100-Q, marginal revenue is MR=100-2Q, and marginal cost (and average cost) is constant at 20. a. What single price will maximize a monopolist's profit? b. What will be the prices and quantity under two-part pricing? It involves a lump sum fee (e.g., membership fee) equal to the consumer surplus at competitive prices and user fees (i.e., unit price) equal to the competitive price. c. Now the monopolist has another group of consumers whose...
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,...
Hi, i need help with this question
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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...
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