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Question 15 (1 point) A cable TV company faces the following demand schedule for its service:...
1 5. A monopolist faces the following demand schedule for the good that is its product. (15 points) Quantity Price...
1 5. A monopolist faces the following demand schedule for the good that is its product. (15 points) Quantity Price Total Revenue Marginal Revenue $500.00 $450.00 $400.00 $350.00 $300.00 $250.00 $200.00 $150.00 $100.00 $40.00 10 a. Compute the firm's Total Revenue for each quantity. b. Compute the firm's Marginal Revenue for each quantity. c. If fixed costs are $200 and marginal cost is constant at $40 per item what quantity will the firm produce to maximize profit? d. What price...
The information in the table below depicts the total demand for premium channel digital cable TV...
The information in the table below depicts the total demand for premium channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $100,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero. Table 16-1 Price (per year) $120 3,000 $100 6,000 $ 80 9,000 12,000 $ 40 15,000 $ 20...
Question 12 (1 point) This graph shows the demand for cable TV services in a town...
Question 12 (1 point) This graph shows the demand for cable TV services in a town of 50,000 households. The local government has given a monopoly franchise to a cable company. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for cable TV services. Notice that the firm's monthly marginal cost is constant at $10 per household. Assume that in the long run, the cable company can avoid...
The Table below shows the total demand for cable TV subscriptions for a monopoly. Assume that...
The Table below shows the total demand for cable TV subscriptions for a monopoly. Assume that the monopolist incurs an annual fixed cost of $100,000 and that the marginal cost of providing an additional subscription is always $100. Quantity Price (per year) 0 $400 2,000 $350 4,000 $300 6,000 $250 8,000 $200 10,000 $150 12,000 $100 14,000 $50 16,000 $0 What is the profit maximising level of quantity and price? What is the profit at this level of output?...
1. Theo works for a large firm that is a monopolistic provider of cable TV services...
1. Theo works for a large firm that is a monopolistic provider of cable TV services in a big city. At the present time, the firm charges $60 per month for basic cable service. The demand for cable TV in this town has been estimated to be Q 12,000 100P where Q is the number of subscribers (measured in hundreds) and P is the monthly price for basic cable. Thus, 600,000 residents currently purchase cable TV services from Theo's firm....
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...
Suppose you are the mayor of a small town with one cable television company. You are...
Suppose you are the mayor of a small town with one cable television company. You are in charge of regulating the price the cable tv company can charge for subscriptions to its services. You know that demand for cable TV and the total costs of the cable company are as follows: QD = 260 - 16P TC = 100 + 10Q 1: What is the TV company's marginal cost? 2: Suppose you decide to make the cable provider charge P=ATC....
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 monopolistic competitive firm faces the following demand schedule for its product. In addition, the firm...
A monopolistic competitive firm faces the following demand schedule for its product. In addition, the firm has total fixed costs equal to 20. Price (dollars) Quantity 30 1 26 2 22 3 19.58 4 14 5 10 6 6 7 If the firm has a constant marginal cost of $7 per unit, what total variable cost will the firm incur at the profit-maximizing level of output?
1 5. A monopolist faces the following demand schedule for the good that is its product. (15 points) Quantity Price Total Revenue Marginal Revenue $500.00 $450.00 $400.00 $350.00 $300.00 $250.00 $200.00 $150.00 $100.00 $40.00 10 a. Compute the firm's Total Revenue for each quantity. b. Compute the firm's Marginal Revenue for each quantity. c. If fixed costs are $200 and marginal cost is constant at $40 per item what quantity will the firm produce to maximize profit? d. What price...
The information in the table below depicts the total demand for premium channel digital cable TV subscriptions in a small urban market. Assume that each digital cable TV operator pays a fixed cost of $100,000 (per year) to provide premium digital channels in the market area and that the marginal cost of providing the premium channel service to a household is zero. Table 16-1 Price (per year) $120 3,000 $100 6,000 $ 80 9,000 12,000 $ 40 15,000 $ 20...
Question 12 (1 point) This graph shows the demand for cable TV services in a town of 50,000 households. The local government has given a monopoly franchise to a cable company. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for cable TV services. Notice that the firm's monthly marginal cost is constant at $10 per household. Assume that in the long run, the cable company can avoid...
1. Theo works for a large firm that is a monopolistic provider of cable TV services in a big city. At the present time, the firm charges $60 per month for basic cable service. The demand for cable TV in this town has been estimated to be Q 12,000 100P where Q is the number of subscribers (measured in hundreds) and P is the monthly price for basic cable. Thus, 600,000 residents currently purchase cable TV services from Theo's firm....
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...
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