Question

Question 1: Hypothetical monopoly costs and revenue Quantity Price Total cost $500 $400 450 650 400 950 350 1,300 300 1,700 NMn using the profit-maximization rule, what should the monopoly price be? Show your work. Question 2: Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist must lower the price of its bicycles by $100 to $600 per bicycle. What is the marginal revenue of the eleventh bicycle? Question 3: The following graph contains curves that are faced by a monopolist called Soft Micro. MC MR 30 50 80 100 a) What is the profit-maximizing quantity and price for Soft Micro if it is a single-price monopoly? b) What is the monopolist's profit and consumer surplus in part (a)? Give me the letters of the shape of the surpluses. c) What is the price and quantity if the industry is perfectly competitive. d) What is the consumer and producer surplus in part (c). Give me the letters of the shape of the surpluses. e) What is the profit maximizing quantity if Soft Micro can perfectly price discriminate? f) What is thee consumer and producer surplus in part (e). Give me the letters of the shape of the surpluses.

need the solution for all three questions as soon as possible

Answer 1

det MR Tablast SOO 460 900 lon 500 yos yoo 650 Zone 930 200 1300 10 Doo 350 300 250 305 352 yoo 1400 150o Thus 6 =38 P=you Profit is mak when mRainc. TRIO= 700x10=7000 TR1 = 11x 600-6600 MRI - TR II-TRio = 660o-7o0o=-400 3 а, во мак ме — ме p=lue o=50 = (14-9)x50=5450=250 Consume suplens = area Aca=bx5x50=125 24 fefent competition Pane c) x 9 x 100=450 P=104 ce=100 AEI = = area suples consumer Poduu surp