ZuoTi.Pro
Question

Suppose there is a monopoly in the market whose consumers are one of two types (A...

Suppose there is a monopoly in the market whose consumers are one of two types (A and B). The (inverse) demand of type A consumers are given by P = 60 −QA/4 and the (inverse) demand for type B consumers are given by P = 45 −QB/2 .

Suppose that this monopolist has a constant marginal cost of production of MC(q) = 18.25 + Q/6 . Solve for the equilibrium price charged to each type of consumer and the equilibrium quantity sold to each type of consumer. Calculate total monopolist profits.

business   economics   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Date Date ург. (Р) P = 60-QA AR Р: 45 - 9 = А TR - 60 SA - 9А, Тg = 459р - ? MR = Log bo - SA MK - 45 - во MC = 18 • 25 + 845-BB = 18.25 + OA + COB 45-18-25 = QA & OB + GB 26.75 x 6 = GA +6QB +QB. solving 160.5 = QA + 70B ... equlis). the 2 equatioProfil = TR - TC TR = TRA + TRB = 60 x 59 - 159x59) - 8540 -870-24 = 2669.75 = 45 x 14-5 - (14.5 x 14.5) - 652.5 -105.12 - 5.

0 0
Add a comment
Know the answer?
Add Answer to:
Suppose there is a monopoly in the market whose consumers are one of two types (A...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • D Question 15 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve give...

    D Question 15 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer is non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is truef the monopolist practices third degree price discrimination? The price charged to student equals 35 and non-students equals 60 The price charged to...

  • 22. Suppose a monopoly sells to two identifiably different types of customers, A and B, who...

    22. Suppose a monopoly sells to two identifiably different types of customers, A and B, who are unable to practice arbitrage. The inverse demand curve for group A is PA 20-QA, and the inverse demand curve for group B is PB 20-2QB. The monopolist is able to produce the good for either type of customer at a constant marginal cost of 4, and the monopolist has no fixed costs. If the monopolist practices group price discrimination, what are the profit...

  • A) Suppose a monopoly sells to two identifiably different types of customers, A and B, who...

    A) Suppose a monopoly sells to two identifiably different types of customers, A and B, who are unable to practice arbitrage. The inverse demand curve for group A is PA = 29 - QA, and the inverse demand curve for group B is PB = 19 - 2QB. The monopolist is able to produce the good for either type of customer at a constant marginal cost of 3, and the monopolist has no fixed costs. If the monopolist practices group...

  • Perfect competition Market surveys show that there are two types of consumers for frozen yogurt. The...

    Perfect competition Market surveys show that there are two types of consumers for frozen yogurt. The first type like frozen yogurt and have an inverse demand of P1(q) = 12 − q; the second type are crazy about yogurt and have an inverse demand of P2(q) = 18 − q. In the town of Smallville there are only 2 consumers: one of them likes frozen yogurt and the other is crazy about frozen yogurt. (a) Determine and plot the market...

  • D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve give...

    D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer are non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is true if the monopolist practices third degree price discrimination? Total profit earned equals 2150. Total profit earned equals 2250 Total profnt earned equals...

  • A monopolist practices third degree price discrimination by separating its customers into two groups: consumers under...

    A monopolist practices third degree price discrimination by separating its customers into two groups: consumers under 65 and senior citizens. The monopolist's marginal oost is MC = 0.05q, where q is the total output in both markets. The marginal cost does not depend on the market in which the goods are sold. The demand curves are Adults: PA-25-1/6 x QA-25-0.1667 x QA Seniors: PS = 15-⅛xQs-15-0.125 x Qs ● . A. What is the total industry demand curve? (Rewrite each...

  • Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by...

    Problem 1. Second Degree price discrimination Suppose all consumers are identical and market demand given by p = 100-q. The monopoly's cost function is C(q) q2. (a) Suppose the monopolist cannot discriminate prices and must set a uniform price. Compute price and quantity set by the monopolist. Compute the profit of the monopoly. b) Suppose now that the monopoly can set a two-part tariff. Find the optimal two-part tariff. Compute the profit of the monopolist Problem 2. Third Degree price...

  • 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...

  • Part C Suppose the market for flowers is perfectly competitive. The market dema decimals to 2...

    Part C Suppose the market for flowers is perfectly competitive. The market dema decimals to 2 decimal places. tsupply curve is qs p-200. In the questions below, round any a. Calculate the perfectly competitive equilibrium q and p Suppose the government institutes a per-unit tax on consumers equal to 75% of the market price of flowers. Calculate the new equilibrium q and p, consumer incidence, producer incidence, points (original demand and supply curves, new demand and/or s intercepts, slopes, equilibrium...

  • Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 –...

    Part E-H Assume a profit-maximizing monopolist faces a market demand given by P = (12,000 – 90Q)/100 and long run total and marginal cost given by LRTC = 5Q + Q2 + 40 (Note: The answer to this question must be hand-written.): a) Find the equation of the marginal revenue curve corresponding to the market demand curve. b) Find the equation for the marginal cost function. c) Find the profit-maximizing quantity of output for the monopoly and the price the...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT