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22. 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...
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...
ow our monopolist faces two types of customers: Type A has the inverse demand functi -300-5QA...
ow our monopolist faces two types of customers: Type A has the inverse demand functi -300-5QA while type B has the inverse demand function P 150-5QB. The total function is still C 50Q 4a) If the monopolist can only charge uniform, linear prices but can distinguish between the two types and prevent resale (G.e., third-degree group price discrimination), what price will it charge on cost each type, and how much will each type buy and how much consumer surplus will...
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...
Which of the following statements is not correct? A. For a given demand curve, the profit...
Which of the following statements is not correct? A. For a given demand curve, the profit for a single-price monopolist is larger than for a monopolist that can price discriminate. B. The deadweight loss that arises in monopoly stems from the fact that the profit-maximizing single-price monopoly firm produces a quantity of output that is smaller the socially-efficient quantity. C. The deadweight loss caused by monopoly is similar to the deadweight loss caused by a tax on a product. D....
Suppose Barefeet is a monopolist that produces and sells Ooh boots, an amazingly trendy brand with...
Suppose Barefeet is a monopolist that produces and sells Ooh boots, an amazingly trendy brand with no close substitutes. The following graph shows the market demand and marginal revenue (MR) curves Barefeet faces, as well as its marginal cost (MC), which is constant at $20 per pair of Ooh boots. For simplicity, assume that fixed costs are equal to zero; this, combined with the fact that Barefeet's marginal cost is constant, means that its marginal cost curve is also equal...
a monopolistic firm sells it product to two types of customers , business customers and other...
a monopolistic firm sells it product to two types of customers , business customers and other customers . its total cost are given by Tc=20+2Q , where Q denotes total output . the total demand of business customers is given by Q^3 =14-P .The total demand of other customers is given by Q^T=5-0.5P . Assuming that third degree price discrimination between the two groups is possible. Calculate the prices that the firm will charge each group , the amount it...
Problem 3: A market with a monopoly producer has inverse demand P = 120 - 2Q...
Problem 3: A market with a monopoly producer has inverse demand P = 120 - 2Q (which gives marginal revenue MR = 120 - 4Q). The monopolist has marginal costs are MCQ) = 4Q and no fixed costs. a) What is the monopolist's producer surplus when it charges the profit maximizing uniform price. b) What is the deadweight loss due to monopoly in this market? c) What would the monopolist's producer surplus be if it could engage in first degree...
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...
If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average...
If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single price monopoly? Profit from perfect price discrimination (T) is S . (Enter your response as a whole number) Corresponding consumer surplus is (enter your response as whole numbers): CSESO welfare is W=$...
1. The city's Water and Sewer provider is a regulated natural monopoly that has a cost function, ...
Hi, i need help with this question
1. The city's Water and Sewer provider is a regulated natural monopoly that has a cost function, C(Q,N) 1,000 +4N+3Q, where N is the number of households, and Q is the cubic inches of water consumed per day. There are 50 high type consumers each with demand, and 30 low type consumers with demand, Each q is cubic inches consumed per household per day. Start with the assumption that the monopolist is profit...
ow our monopolist faces two types of customers: Type A has the inverse demand functi -300-5QA while type B has the inverse demand function P 150-5QB. The total function is still C 50Q 4a) If the monopolist can only charge uniform, linear prices but can distinguish between the two types and prevent resale (G.e., third-degree group price discrimination), what price will it charge on cost each type, and how much will each type buy and how much consumer surplus will...
Problem 3: A market with a monopoly producer has inverse demand P = 120 - 2Q (which gives marginal revenue MR = 120 - 4Q). The monopolist has marginal costs are MCQ) = 4Q and no fixed costs. a) What is the monopolist's producer surplus when it charges the profit maximizing uniform price. b) What is the deadweight loss due to monopoly in this market? c) What would the monopolist's producer surplus be if it could engage in first degree...
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...
If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single price monopoly? Profit from perfect price discrimination (T) is S . (Enter your response as a whole number) Corresponding consumer surplus is (enter your response as whole numbers): CSESO welfare is W=$...
Hi, i need help with this question
1. The city's Water and Sewer provider is a regulated natural monopoly that has a cost function, C(Q,N) 1,000 +4N+3Q, where N is the number of households, and Q is the cubic inches of water consumed per day. There are 50 high type consumers each with demand, and 30 low type consumers with demand, Each q is cubic inches consumed per household per day. Start with the assumption that the monopolist is profit...
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