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Assume that a single price monopolist has a marginal cost curve given by MC=10+2Q. Further the...
Suppose a single price monopolist faces the inverse demand curve: P =50– 2Q. Further suppose this...
Suppose a single price monopolist faces the inverse demand curve: P =50– 2Q. Further suppose this monopolist faces a constant MC curve: MC = 10. Compute the welfare loss created when this single monopolist maximizes profits.
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.
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...
A natural monopolist faces the following demand curve: P = 409 - 2Q, its total cost...
A natural monopolist faces the following demand curve: P = 409 - 2Q, its total cost is given by: TC = 12800 + 9Q (marginal cost is the slope of total cost). (a) If the government regulates the monopolist to charge a socially optimal price, what price will it charge and how many units will it sell? How much are the profit, consumer surplus and producer surplus? (b) If it is not a regulated monopolist, what is its profit maximizing...
Suppose a profit maximizing monopolist has total cost and marginal cost as follow:
Suppose a profit maximizing monopolist has total cost and marginal
cost as follow:1. Suppose a profit-maximizing monopolist has total cost and marginal cost as follow: \(\mathrm{TC}=0.1 Q^{2}+Q+10\) and \(\mathrm{MC}=0.2 Q+1\). It faces the demand curve \(\mathrm{Q}=35-5^{\mathrm{P}} .(35\) points \()\)a) What are the price, output, and profit for this monopolist?b) Carefully draw the diagram that illustrates your answers.c) What are the equilibrium price, output, and total profit if this is a perfectly competitive market?d) Compare the results between monopoly and perfect...
Suppose a profit-maximizing monopolist has total cost and marginal cost as follow
Suppose a profit-maximizing monopolist has total cost and marginal cost as follow. TC =8Q + 10 and MC = 8. It faces the demand curve P=20-1/5Q. What is the equilibrium price and output? What is the total profit? Calculate the consumer surplus, producer surplus, and deadweight loss if the firm acts as a monopolist. Illustrate your answer with a diagram. Calculate the consumer surplus, producer surplus, and deadweight loss if the firm acts as a perfectly price-discriminated monopolist. Illustrate your answer with a diagram.
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal cost is MC=100Q+100, where Q is thousands of units. a). what price would the monopolist charge to maximize profits and how many units will the monopolist sell? (hint, recall that the slope of the MARGINAL Revenue is twice as steep as the inverse demand curve. b). at the profit-maximizing price, how much profit would the monopolist earn? c). find consumer surplus and Producer surplus...
Suppose a monopolist faces a market demand curve of the form: P 122 - 0.2Q. This...
Suppose a monopolist faces a market demand curve of the form: P 122 - 0.2Q. This monopolist has a total cost curve given by: TC 2Q. If this monopolist can only charge a single price in the market to maximise profit, what is the consumer surplus generated by this monopolist? $8702.5 $18,600 $18,000 $9,000 $62
Suppose a monopolist faces a market demand curve of the form: P 122 - 0.2Q. This monopolist has a total cost curve given by: TC...
A natural monopolist faces the following demand curve: P = 202 - 5Q, its total cost is given by: ...
A natural monopolist faces the following demand curve: P = 202 - 5Q, its total cost is given by: TC = 720 + 2Q (marginal cost is the slope of total cost). (a) If the government regulates the monopolist to charge a socially optimal price, what price will it charge and how many units will it sell? How much are the profit, consumer surplus and producer surplus? (b) If it is not a regulated monopolist, what is its profit maximizing...
1. Let the market demand curve be P=1000 - 10Q. Assume the market is controlled by...
1. Let the market demand curve be P=1000 - 10Q. Assume the market is controlled by a monopolist. Let fixed cost be $10,000 and Marginal Costs (MC)=20Q. a) What is the profit maximizing output? b) What is the monopolist's total revenue at the profit maximizing output? c) How much profit is the monopolist earning? d) Assume the government breaks up the monopolist in order to create a perfectly competitive market of identical firms. Assume the MC curve is now the...
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...
Suppose a profit maximizing monopolist has total cost and marginal
cost as follow:1. Suppose a profit-maximizing monopolist has total cost and marginal cost as follow: \(\mathrm{TC}=0.1 Q^{2}+Q+10\) and \(\mathrm{MC}=0.2 Q+1\). It faces the demand curve \(\mathrm{Q}=35-5^{\mathrm{P}} .(35\) points \()\)a) What are the price, output, and profit for this monopolist?b) Carefully draw the diagram that illustrates your answers.c) What are the equilibrium price, output, and total profit if this is a perfectly competitive market?d) Compare the results between monopoly and perfect...
Suppose a monopolist faces a market demand curve of the form: P 122 - 0.2Q. This monopolist has a total cost curve given by: TC 2Q. If this monopolist can only charge a single price in the market to maximise profit, what is the consumer surplus generated by this monopolist? $8702.5 $18,600 $18,000 $9,000 $62
Suppose a monopolist faces a market demand curve of the form: P 122 - 0.2Q. This monopolist has a total cost curve given by: TC...
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