Homework Answers
The price should be $30 and the minimum quantity is 60.
(Output is same as it would be under perfect price discrimination when price is set equal to MC. So, price and output is determined at the point where MC intersects D curve. It gives, P = $30 and Q = 60)
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The graph to the right represents the linear demand curve for each identical consumer in a...
Need as much details as possible. Microeconomics. Suppose that there is only one firm on the...
Need as much details as possible. Microeconomics. Suppose that there is only one firm on the market (a monopoly) and that the (inverse) market demand is P(Q). Which statement is NOT correct? a. If all consumers in the market are identical, the monopoly can achieve the first-degree price discrimination outcome by setting a two-part tariff optimally. b. If the monopoly is setting a uniform price, then MR=P. c. If the monopoly is doing first-degree price discrimination, then MR = P(Q)....
Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost...
Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost is MC=20 and the Marginal Revenue is MR=100-2Q. 1. Find the monopolist Quantity and Price. 2.Find the Deadweight loss relative to the perfectly competitive outcome. 3. A. Calculate the welfare for the monopoly market, before and after the introduction of a price ceiling. B. Which scenario do the consumers prefer?
A monopolist faces a demand curve given by P = 200-10Q
A monopolist faces a demand curve given by P = 200-10Q, where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $60. There are no fixed costs of production.A) What quantity should the monopolist produce in order to maximize profit?B) What price should the monopolist charge in order to maximize profit?C) How much profit will the monopolist make?D) What is the deadweight loss created by this monopoly...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The monopolist a constant marginal cost MC = 20 and an average cost AC = 20 + 800 a) In an unregulated market, what price will the monopolist charge? What is the DWL associated with this allocation? b) Suppose that a regulator imposes marginal cost regulation by setting P = 20. How many units will the monopoly sell? What is the DWL associated with this...
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where...
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production. Hint: To answer the following questions, it may be helpful to draw a graph! What quantity should the monopolist produce in order to maximize profit? What price should the monopolist charge in...
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15.
A monopolist faces a demand curve P = 210 - 3Q and faces a constant marginal cost MC = 15. a) Calculate the profit-maximizing monopoly quantity and compute the monopolist's total revenue at the optimal price. d) Suppose that this monopoly opens for competition and the market becomes perfectly competitive. The firms face constant marginal cost MC = 15. Find the long-run perfectly competitive industry price and quantity.
please help! Suppose that good X is perfectly divisible (you can buy non-integer quantilies). The marginal...
please help!
Suppose that good X is perfectly divisible (you can buy non-integer quantilies). The marginal cost curve is given by MC 1.70+2 The demand curve is given by P -39-1.5Q, which gives MR 39-30 n the most efficient outcome (which perfectly competitive markets achieve), P-MC Solve the equilibrium pro e and quantity in The most efficient equilbrium quantity is The most officient equilibrium price is But a monopolist doos not produce the mos fficient price The most profitable quantity...
3. Working with Numbers and Graphs 04 Consider a market with the following demand (D), marginal...
3. Working with Numbers and Graphs 04 Consider a market with the following demand (D), marginal revenue (MR), and marginal cost (MC- ATC) curves. 150 130 110 MC-ATO 30 F5 F6 2 3 4 5 -QWERTY Tab 150 120 MC ATC 1 MR 020 40 100 120 140 100 180 QUANTITY (Units) ゲ Esc F4 FS F6 F8 4 0 20 40 0100120 14 0 10 QUANTITY (Units) if the market is perfectly competitive, profit equalsS f the market is...
Use the graph to the right for a monopoly to answer the questions 4.8 What quantity will the mono...
Use the graph to the right for a monopoly to answer the questions 4.8 What quantity will the monopoly produce, and what price will the monopoly charge? MC 4.0 3.6 5 3.2 a 2.8 2.4 o 2.0 The monopoly will produce units and charge $L per unit. (Enter numeric responses using real numbers rounded to two decimal places.) ATC Suppose the government decides to regulate this monopoly and imposes a price ceiling of $2.40 (in other words, the monopoly can...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a constant marginal cost MC = 4. (a) Calculate the profit-maximizing monopoly quantity and price, and compute the monopolist's total rev- enue and profits at the optimal price. (b) Suppose that the monopolist's marginal cost in- creases to MC = 8. Verify that the monopolist's total revenue goes down. (c) Suppose that all firms in a perfectly competitive equilibrium had a constant marginal cost MC...
Problem 3: Natural Monopoly Regulation. A natural monopolist faces a demand curve P = 100-Q. The monopolist a constant marginal cost MC = 20 and an average cost AC = 20 + 800 a) In an unregulated market, what price will the monopolist charge? What is the DWL associated with this allocation? b) Suppose that a regulator imposes marginal cost regulation by setting P = 20. How many units will the monopoly sell? What is the DWL associated with this...
Question 3 A monopolist faces a demand curve given by P = 105 - 30 where P is the price of the good and Q is the quantity demanded. The marginal cost of production is constant and is equal to $15. There are no fixed costs of production. Hint: To answer the following questions, it may be helpful to draw a graph! What quantity should the monopolist produce in order to maximize profit? What price should the monopolist charge in...
please help!
Suppose that good X is perfectly divisible (you can buy non-integer quantilies). The marginal cost curve is given by MC 1.70+2 The demand curve is given by P -39-1.5Q, which gives MR 39-30 n the most efficient outcome (which perfectly competitive markets achieve), P-MC Solve the equilibrium pro e and quantity in The most efficient equilbrium quantity is The most officient equilibrium price is But a monopolist doos not produce the mos fficient price The most profitable quantity...
3. Working with Numbers and Graphs 04 Consider a market with the following demand (D), marginal revenue (MR), and marginal cost (MC- ATC) curves. 150 130 110 MC-ATO 30 F5 F6 2 3 4 5 -QWERTY Tab 150 120 MC ATC 1 MR 020 40 100 120 140 100 180 QUANTITY (Units) ゲ Esc F4 FS F6 F8 4 0 20 40 0100120 14 0 10 QUANTITY (Units) if the market is perfectly competitive, profit equalsS f the market is...
Use the graph to the right for a monopoly to answer the questions 4.8 What quantity will the monopoly produce, and what price will the monopoly charge? MC 4.0 3.6 5 3.2 a 2.8 2.4 o 2.0 The monopoly will produce units and charge $L per unit. (Enter numeric responses using real numbers rounded to two decimal places.) ATC Suppose the government decides to regulate this monopoly and imposes a price ceiling of $2.40 (in other words, the monopoly can...
5. A monopolist faces a demand curve P = 60 – 2Q and initially faces a constant marginal cost MC = 4. (a) Calculate the profit-maximizing monopoly quantity and price, and compute the monopolist's total rev- enue and profits at the optimal price. (b) Suppose that the monopolist's marginal cost in- creases to MC = 8. Verify that the monopolist's total revenue goes down. (c) Suppose that all firms in a perfectly competitive equilibrium had a constant marginal cost MC...
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