Here in the graph, Do = Market demand curve, So= Market supply curve
socially optimal equilibrium price and quantity is where Do=So thus Ps = socially optimal price; Qs= socially optimal quantity
MR = Marginal revenue curve
profit maximizing level of price and quantity for monopoly is where MR=MC ; in monopoly MC refers to the market supply curve thus Pm= monopoly profit maximizing price; Qm= monopoly profit maximizing output.
b. For this monopoly market, graph it in equilibrium and clearly label the following: i. Market...
Please graph clearly with labels!!! Thank you! Tennessee Subway Corporation is a natural monopoly. The graph shows the market demand curve and the firm's marginal cost curve. The monopoly is unregulated and maximizes profit. Price and cost (dollars per month) Draw the firm's marginal revenue curve. Label it MR. Draw a point at the profit-maximizing price and quantity. Label it 1 The monopoly makes a positive economic profit. Draw the firm's average total cost curve. Label it ATC. Draw a...
1. What is a monopoly? Name 2 differences between a monopoly and a perfectly competitive market. 2. What is the profit maximizing condition for a price-setting monopoly? 3. Show that MR follows the notion "same intercept, twice the slope" of demand. 4. Is a monopoly the most socially optimal market? How does a monopoly differ from a perfectly competitive market? Explain and show in a graph. What is the difference in welfare? 5. At what point would a monopoly decide...
Help please label graph clearly with correct label the answer. For the last question, the option is The firm (produces or does not produce) the efficient quantity An unregulated natural monopoly bottles ReNew, a unique product with no substitutes. The monopoly's total fixed cost is $225,000 and marginal cost is 30 cents a bottle The graph shows the demand curve for ReNew Draw the marginal revenue curve. Label it MR. Draw the marginal cost curve. Label it MC Draw a...
i just need the answer for "e". Problem 1 (4 points) Knope Industries is a firm that produces miniature model souvenirs with total cost function TC(Q) = 2500 + 50Q +0.02Q2 (e) Sketch a graph with the demand curve, marginal revenue curve, and marginal cost curve, and label the profit-maximizing price and quantity. (1 pt) Problem 1 (4 points) Knope Industries is a firm that produces miniature model souvenirs with total cost function TCQ) = 2500+ 500+ 0.02Q (a) Write...
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 the 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 the black point (plus symbol) on the graph...
5. Monopoly outcome versus competition outcomeConsider 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 the 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 the black point (plus symbol) on the graph...
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...
Question 3 Monopoly a) Discuss how monopoly markets discriminate prices by using the concept of market segmentation. b) The market demand curve for a monopoly firm is given as P = 200 – 20. Furthermore, the marginal cost is represented by the equation MC = 20 + 20. The firm's TC can be expressed as TC = 200 + Q2 + 100. Use this information to answer the questions and calculate the following: i) Profit maximizing quantity and price. ii)...
Let weekly demand for tankers of water to a small village be represented by the following demand curve: P = 160 – 20Q And suppose that HydroTank is the monopoly supplier of water to the village with a marginal cost curve: MC = 40 + 20Q; a) On a clearly labeled diagram, sketch the demand, marginal revenue, and marginal cost curves and calculate and show the monopolist’s profit-maximising quantity(QM) and the price that will be charged in the market (PM)....
Need help with this problem. Where do i plot the monopoly outcome on the graph and also answering the following questions. I will rate. thanks! 8. Natural monopoly analysis The following graph shows the demand (D) for cable services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local cable company, a natural monopolist. On the following graph, use the...