Instructions
Answer these 3 scenarios. Here is a handout
Scenario #1
Scenario #2
Scenario #3
Suppose a price-discriminating monopoly has segregated its market into two sub-markets (Market 1 and Market 2) and can prevent resale between the two. Assume that its marginal cost is $10 and equal to its average total cost of $10. The firm's demand schedule for the first group is given by the first two columns of the table.
Market 1 |
Market 2 |
|||||||
Output |
Price |
Total Revenue |
MR |
Output |
Price |
Total Revenue |
MR |
|
0 |
$24 |
$0 |
0 |
$33 |
$0 |
|||
1 |
22 |
$22 |
$22 |
1 |
30 |
$30 |
$30 |
|
2 |
20 |
$40 |
$18 |
2 |
27 |
$54 |
$24 |
|
3 |
18 |
$54 |
$14 |
3 |
24 |
$72 |
$18 |
|
4 |
16 |
$64 |
$10 |
4 |
21 |
$84 |
$12 |
|
5 |
14 |
$70 |
$6 |
5 |
18 |
$90 |
$6 |
|
6 |
12 |
$72 |
$2 |
6 |
15 |
$90 |
$0 |
|
7 |
10 |
$70 |
($2) |
7 |
12 |
$84 |
($6) |
|
8 |
8 |
$64 |
($6) |
8 |
9 |
$72 |
($12) |
Questions:
Instructions Answer these 3 scenarios. Here is a handout Scenario #1 Scenario #2 Scenario #3 Suppose...
Instructions
Answer these 3 scenarios. Here is a handout
Scenario #1
Scenario #2
Scenario #3
Suppose a price-discriminating monopoly has segregated its
market into two sub-markets (Market 1 and Market 2) and can prevent
resale between the two. Assume that its marginal cost
is $10 and equal to its average total
cost of $10. The firm's demand schedule for the first
group is given by the first two columns of the table.
Market 1
Market 2
Output
Price
Total Revenue...
Scenario #1 200 Scenario #2 Scenario #3 Suppose a price-discriminating monopoly has segregated its market into two sub-markets (Market 1 and Market 2) and can prevent resale between the two. Assume that its marginal cost is $10 and equal to its average total cost of 10. The firm's demand schedule for the first group is glven by the first two columns of the table Market 1 Market 2 18 14 72 518 10 12 70 18 $90 72 70 12...
The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $6.00 Price Quantity 0 18 16 2 14 12 6 10 8 10 12 8 6 4 14 2 16 0 18 Calculate the firm's marginal revenue curve. The firm's marginal revenue (MR) curve is A. MR 18-1.00Q B. MR 10 1.00Q C. MR 10-0.50Q O D. MR 18-0.25Q O E. MR 18-2.000 What are the firm's profit-maximizing output and price? The...
15. Use the following figure for a firm in a perfectly competitive market. a What is the output that maximizes the firm's profit? b. At the profit-maximizing output, calculate total revenue and total cost. C. If the firm maximizes profit, how much profit does it earn? d. What will likely happen to market demand or market supply in the long run? e. What will likely happen to the market price in the long run? Price (s) d = P =...
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Answer A-H Please Answer the following Questions for a Monopoly Firm. Price Quantity TR MR MC TC Profit $15,000 0 ---- ---- $50,000 14,000 1 $52,000 13,000 2 $53,000 12,000 3 54,000 11,000 4 $2,000 10,000 5 59,000 9,000 6 4,000 8,000 7 $69,000 7,000 8 $8,000 6,000 9 5,000 10 4,000 11 $18,000 3,000 12 $143,000 a) Fill in the missing information above for this Monopoly Firm for its monthly production. Note there are no numbers for MC and...
Economics 242 ce HW#6 Nov. 2.019 Price (5) 200 300 Quantity 350 MR Answer questions 1 - 5 from the Figure above. 1. Identify the output level this firm will produce 2. At this output level what is the price? 3. At this output level calculate total revenue 4. At this output level, calculate total profit or loss 5. At this output level, calculate unit profit or loss Quantity Sold A Monopoly Firm Price Marginal per Unit Revenue SO Marginal...
please answer all questions!
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The graph shows the demand curve for cable television. Assume that monopoly conditions apply. Demand What is the firm's total revenue when selling cable television to 6 houses? 13 12 Price ($) - - total revenue: $ 6 5 What is the firm's marginal revenue from selling cable television to the 13th house? - 0 5 6 12 13 marginal revenue: $ Quantity (houses) The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1–3 below to identify the monopoly's profits....
The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $8.00: Price 18 16 14 12 10 8 6 4 2 0 Quantity 0 4 8 12 16 20 24 28 32 36 Calculate the firm's marginal revenue curve. The firm's marginal revenue (MR) curve is A. MR = 18 - 1.000. B. MR = 10-0.50Q. C. MR = 18 -0.13Q. D. MR = 18 -0.50Q. The firm's profit-maximizing output is 24...