3. (15 points) You are a monopolist with the following cost and demand conditions: P =...
3. (15 points) You are a monopolist with the following cost and demand conditions: P = 100 – 2Q and C(Q) = 50 + Q2.
a. (5 points) Determine the profit-maximizing output and price.
b. (5 points) Graph this solution and show your profits and the deadweight loss to society in your graph.
c. (5 points) Determine the actual amount of deadweight loss.
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3. (15 points) You are a monopolist with the following cost and
demand conditions: P =...
3. Lucky Goldstar has a monopoly in the boat manufacturing industry. They have the followin cost...
3. Lucky Goldstar has a monopoly in the boat manufacturing industry. They have the followin cost and demand conditions Q- 50-.5P and C(Q)-50+Q2 a. Determine the profit-maximizing output and price b. Graph this solution. c. Show your profits and the deadweight loss in your graph.
Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximi...
Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximizing quantity qm and price pm. What are the monopolist’s profits? (b) What is the value of the Lerner index at qm? (c) Find the efficient quantity and draw a graph depicting the deadweight loss under monopoly.
1. Consider a monopolist facing the demand curve p = 90 - 2q with cost function...
1. Consider a monopolist facing the demand curve p = 90 - 2q with cost function clg)0.252 (a) Find the profit maximizing quantity qm and price pm What are the monopo- list's profits? (b) What is the value of the Lerner index at qm? (c) Find the efficient quantity and draw a graph depicting the deadweight loss under monopoly (d) What is the consumers' surplus under monopoly
MC Qu. 084 Consider a monopoly where the inverse demand for i... Consider a monopoly where...
MC Qu. 084 Consider a monopoly where the inverse demand for i... Consider a monopoly where the inverse demand for its product is given by P = 50 - 20. Total costs for this monopolist are estimated to be C(q) = 100 + 2Q+Q2. At the profit- maximizing combination of output and price, deadweight loss is: Multiple Choice $32. $64. $128. cannot be determined with the given information.
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...
The following offers information on the demand and cost structure for a monopolist. Determine the total...
The following offers information on the demand and cost structure for a monopolist. Determine the total revenue and marginal revenue for the firm and fill in the table. Using the information, you just found, determine the profit maximizing price and quantity for the monopolist. Explain your answer. At the profit maximizing output, what is the profit/loss of the monopolist? Show your work. Compute the deadweight loss that results from the lack of competition in this market. Show your work. If...
Assume a monopolist faces a market demand curve P = 240 – 1⁄2Q and has the...
Assume a monopolist faces a market demand curve P = 240 – 1⁄2Q and has the short-run total cost function C = Q2. a. What is the profit-maximizing level of output and price? b. What are profits? c. What would price and output be if the firm priced at the socially efficient (competitive) level? d. What is the magnitude of the deadweight loss caused by monopoly pricing?
2 3 and 4 b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production f...
2 3 and 4
b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $25 per unit. Complete the following table, and answer the questions below; 2. 1 5 10 5 30 3 5 60...
3. Consider a uniform-price monopolist that faces demand curve P() 14 2Q and faces a total...
3. Consider a uniform-price monopolist that faces demand curve P() 14 2Q and faces a total cost TC() 20 (a) Calculate the profit maximizing price and quantity erw erwyat er Patt Q= (b) Determine the consumer surplus, producer surplus, and deadweight loss erwyat erwy erwyatt CS = el DWL =
A monopolist faces a market (inverse) demand curve P = 50 − Q . Its total...
A monopolist faces a market (inverse) demand curve P = 50 − Q . Its total cost is C = 100 + 10Q + Q2 . a. (1 point) What is the competitive equilibrium benchmark in this market? What profit does the firm earn if it produces at this point? b. (2 points) What is the monopoly equilibrium price and quantity? What profit does the firm earn if it produces at this point? c. (2 points) What is the deadweight...
3. Lucky Goldstar has a monopoly in the boat manufacturing industry. They have the followin cost and demand conditions Q- 50-.5P and C(Q)-50+Q2 a. Determine the profit-maximizing output and price b. Graph this solution. c. Show your profits and the deadweight loss in your graph.
1. Consider a monopolist facing the demand curve p = 90 - 2q with cost function clg)0.252 (a) Find the profit maximizing quantity qm and price pm What are the monopo- list's profits? (b) What is the value of the Lerner index at qm? (c) Find the efficient quantity and draw a graph depicting the deadweight loss under monopoly (d) What is the consumers' surplus under monopoly
MC Qu. 084 Consider a monopoly where the inverse demand for i... Consider a monopoly where the inverse demand for its product is given by P = 50 - 20. Total costs for this monopolist are estimated to be C(q) = 100 + 2Q+Q2. At the profit- maximizing combination of output and price, deadweight loss is: Multiple Choice $32. $64. $128. cannot be determined with the given information.
2 3 and 4
b. What is the average variable cost of producing 2 units of output What is the marginal cost of producing 2 units of output? c. The following table summarizes the short-run production function for your firm. Your product sells for $5 per unit, labor costs $5 per unit, and the rental price of capital is $25 per unit. Complete the following table, and answer the questions below; 2. 1 5 10 5 30 3 5 60...
3. Consider a uniform-price monopolist that faces demand curve P() 14 2Q and faces a total cost TC() 20 (a) Calculate the profit maximizing price and quantity erw erwyat er Patt Q= (b) Determine the consumer surplus, producer surplus, and deadweight loss erwyat erwy erwyatt CS = el DWL =
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