Based on market research, a rural gas station with monopoly power obtains the following information
Based on market research, a rural gas station with monopoly power obtains the following information about the demand and production costs of the gas it sells (quantity is in gallons, price in cents):
Inverse Demand/MPB: P=1000–10Q
Marginal Revenue : MR = 1000 - 200
Marginal Private Cost : MPC = 100 + 10Q
.1. Please find the price and quantity that maximizes the company's profit.
2. Please find the price and quantity that would maximize social welfare.
3. Please calculate the deadweight loss from monopoly.
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Based on market research, a rural gas station with monopoly power obtains the following information
Based on market research
Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD:Demand: P=1000-10QTotal Revenue: TR=1000Q-10Q2Marginal Revenue: MR=1000-20QMarginal Cost: MC=100+10QWhere Q indicates the number or copies sold and P is the price in Ectenian dollars.A. Find the price and quantity that maximizes the company’s profitB. Find the price and quantity that would maximize social welfareC. Find out Dead weight loss
w w er this midterm. Please submit your solutions to Gradescope by 2 pm on Tuesday,...
w w er this midterm. Please submit your solutions to Gradescope by 2 pm on Tuesday, 3/31. The test has 80 points total. Read each question carefully as important details have changed relative to the questions bank. 1 Long Questions (50 points total) Q1 (5pts) Suppose that global demand and supply for a standard one-bedroom apartment in Berkeley North are described by the equations: Qp = 1500 – 30P Os = --300 + 30P where QD and Qs are respectively...
2) Natural gas for residences is best provided by a monopoly due to economies of scale....
2) Natural gas for residences is best provided by a monopoly due to economies of scale. Assume it costs the monopoly $4 per MMBtu for the gas and that monthly demand in MMBtus is given by D(P) = 12 - 0.2P for a typical household. This implies that the inverse demand is P(Q) = 60 - 50 and that the marginal revenue is MR = 60 - 100. a. Extra: Using algebra, verify the formula for the inverse demand. b....
Practice Question 4. The inverse demand curve a monopoly faces is p = 30 – Q....
Practice Question 4. The inverse demand curve a monopoly faces is p = 30 – Q. The firm's total cost function is C(Q) = 0.5Q² and thus marginal cost function is MC(Q) = Q. (a) Determine the monopoly quantity, price and profit, and calculate the CS, PS and social welfare under the monopoly. (b) Determine the socially optimal outcome and calculate the CS, PS and social welfare under the social optimum. (c) Calculate the deadweight loss due to the monopolist...
Deadweight Loss of Monopoly Question: Please provide work to help me understand, thanks! 1. Deadweight loss...
Deadweight Loss of Monopoly Question: Please provide work to
help me understand, thanks!
1. Deadweight loss of monopoly Suppose that electricity consumers have an inverse demand curve given by: P(C)=1-, There is one supplier of electricity, which has a total cost function given by: ce) = You can assume that there are no externalities associated with electricity consumption or production. 1.1. What is the marginal cost function? Draw the marginal cost function and the inverse demand curve on the same...
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...
Tir e n casting firm when hired lw keurig, which is a monopoly in single-serving codle...
Tir e n casting firm when hired lw keurig, which is a monopoly in single-serving codle mne to advise them on their lines The executive at keurig know that their r es is pritable, but they don't understand the economies behind it. Based on market research, Keurig n the following information about the demand and production costs of its coffee machines o Demand: P - 1000-100 Total Revenue TR - 10001 - 100% Marginal Revenue MR - 1000 - 200...
Answer these with thorough explanations, please! 5. Monopoly outcome versus competition outcome Consider the daily market...
Answer these with thorough explanations, please!
5. Monopoly outcome versus competition outcome Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs. Place...
Consider a market for electricity with aggregate inverse demand curve: p = 10 where p is...
Consider a market for electricity with aggregate inverse demand curve: p = 10 where p is the price of electricity in dollars per unit. The market demand curve is thus horizontal at a price of 10 Let e denote consumption of electricity. A single firm has variable production costs of: c(e) = 2 Fixed costs are zero. Assume that each unit of production generates a units of damages de): d(e) = ae Assume that a = 2 (1) Assume there's...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private MC) neighbors (lowering the overall price of electricity, reducing pollution, and so on) These external benefits to consumers are estimated to be EMB 2Q (the more windows installed, the more external benefit to installing more windows). a) Find the equilibrium price and quantity that will be produced in a...
w w er this midterm. Please submit your solutions to Gradescope by 2 pm on Tuesday, 3/31. The test has 80 points total. Read each question carefully as important details have changed relative to the questions bank. 1 Long Questions (50 points total) Q1 (5pts) Suppose that global demand and supply for a standard one-bedroom apartment in Berkeley North are described by the equations: Qp = 1500 – 30P Os = --300 + 30P where QD and Qs are respectively...
2) Natural gas for residences is best provided by a monopoly due to economies of scale. Assume it costs the monopoly $4 per MMBtu for the gas and that monthly demand in MMBtus is given by D(P) = 12 - 0.2P for a typical household. This implies that the inverse demand is P(Q) = 60 - 50 and that the marginal revenue is MR = 60 - 100. a. Extra: Using algebra, verify the formula for the inverse demand. b....
Practice Question 4. The inverse demand curve a monopoly faces is p = 30 – Q. The firm's total cost function is C(Q) = 0.5Q² and thus marginal cost function is MC(Q) = Q. (a) Determine the monopoly quantity, price and profit, and calculate the CS, PS and social welfare under the monopoly. (b) Determine the socially optimal outcome and calculate the CS, PS and social welfare under the social optimum. (c) Calculate the deadweight loss due to the monopolist...
Deadweight Loss of Monopoly Question: Please provide work to
help me understand, thanks!
1. Deadweight loss of monopoly Suppose that electricity consumers have an inverse demand curve given by: P(C)=1-, There is one supplier of electricity, which has a total cost function given by: ce) = You can assume that there are no externalities associated with electricity consumption or production. 1.1. What is the marginal cost function? Draw the marginal cost function and the inverse demand curve on the same...
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...
Tir e n casting firm when hired lw keurig, which is a monopoly in single-serving codle mne to advise them on their lines The executive at keurig know that their r es is pritable, but they don't understand the economies behind it. Based on market research, Keurig n the following information about the demand and production costs of its coffee machines o Demand: P - 1000-100 Total Revenue TR - 10001 - 100% Marginal Revenue MR - 1000 - 200...
Answer these with thorough explanations, please!
5. Monopoly outcome versus competition outcome Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium with many hot dog stands in city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply (S = MC) curves in the market for hot dogs. Place...
Consider a market for electricity with aggregate inverse demand curve: p = 10 where p is the price of electricity in dollars per unit. The market demand curve is thus horizontal at a price of 10 Let e denote consumption of electricity. A single firm has variable production costs of: c(e) = 2 Fixed costs are zero. Assume that each unit of production generates a units of damages de): d(e) = ae Assume that a = 2 (1) Assume there's...
3) Assume that the market for energy efficient window installations in San Diego is perfectly competitive. Quarterly inverse supply and inverse demand are: P 1200 3Q (Private MB) P 440Qs (Private MC) neighbors (lowering the overall price of electricity, reducing pollution, and so on) These external benefits to consumers are estimated to be EMB 2Q (the more windows installed, the more external benefit to installing more windows). a) Find the equilibrium price and quantity that will be produced in a...
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