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? Book Air 4) (10 points) Suppose a natural monopolist is faced with high fixed costs...
2. Suppose a natural monopolist has fixed costs of $50 and constant marginal costs of $10....
2. Suppose a natural monopolist has fixed costs of $50 and constant marginal costs of $10. The demand for the product is as follows: $19 8 7 6 5 4 3 2 1 Price ($) 5 1 1 2 2 3 3 4 4 05 050 5 05 Quantity demanded pero day a) What price and quantity will prevail if the monopolist is not regulated? b)j What price and quantity will prevail with efficient pricing (MC P)?
Suppose a monopolist faces consumer demand given by P = 400 - 10 with a constant...
Suppose a monopolist faces consumer demand given by P = 400 - 10 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of $ (Enter your response rounded as a whole number.) Correspondingly, consumer surplus is $0. However, if the firm were to practice price discrimination such that consumer surplus becomes profit,...
Suppose a monopolist faces consumer demand given by P 600 1Q with a constant marginal cost...
Suppose a monopolist faces consumer demand given by P 600 1Q with a constant marginal cost of $60 per unit (where marginal cost equals average total cost. asssume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output...
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 monopolist faces consumer demand given by P 400-5Q with a constant marginal cost of $20 per unit (where margi...
Suppose a monopolist faces consumer demand given by P 400-5Q with a constant marginal cost of $20 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs) If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant...
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...
2. (10 points) Consider a monopolist that has costs equal to: C = 200 + 20...
2. (10 points) Consider a monopolist that has costs equal to: C = 200 + 20 Q + 2 Q? And which faces a demand curve: Q = 1180-P a) How much will this monopolist offer to the market? What price will the monopolist charge? What are the profits of the monopolist? b) Draw a graph of your solution. c) What are the profits of the monopolist in the long-run? d) Is this monopolist a regulated monopolist or a natural...
A pharmaceutical company acquired a 10 year drug patent, making the company a monopolist in the...
A pharmaceutical company acquired a 10 year drug patent, making the company a monopolist in the corresponding market for this period. Suppose the marginal cost of producing the drug is zero and the demand curve has a downward slope and a positive intercept. (a) Plot the demand, marginal revenue and the marginal cost curves and show the quantity produced by the monopolist. (b) Suppose after the patent runs out, new firms enter the market for this particular drug and the...
A pharmaceutical company acquired a 10 year drug patent, making the company a monopolist in the...
A pharmaceutical company acquired a 10 year drug patent, making the company a monopolist in the corresponding market for this period. Suppose the marginal cost of producing the drug is zero and the demand curve has a downward slope and a positive intercept. (a) Plot the demand, marginal revenue and the marginal cost curves and show the quantity produced by the monopolist. (b) Suppose after the patent runs out, new firms enter the market for this particular drug and the...
Suppose that a monopolist faces the following costs and demand for its product: A. Complete the...
Suppose that a monopolist faces the following costs and demand
for its product:
A. Complete the table above. (Draw your table on a piece of
paper, take a picture with your phone and then attach the image to
your answer here.)
B. Given that the monopolist wants to maximise profits, what
price will it charge, and how many units will it produce?
C. Suppose that the monopolist is able to engage in first degree
(perfect) price discrimination. How many units...
2. Suppose a natural monopolist has fixed costs of $50 and constant marginal costs of $10. The demand for the product is as follows: $19 8 7 6 5 4 3 2 1 Price ($) 5 1 1 2 2 3 3 4 4 05 050 5 05 Quantity demanded pero day a) What price and quantity will prevail if the monopolist is not regulated? b)j What price and quantity will prevail with efficient pricing (MC P)?
Suppose a monopolist faces consumer demand given by P = 400 - 10 with a constant marginal cost of $40 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of $ (Enter your response rounded as a whole number.) Correspondingly, consumer surplus is $0. However, if the firm were to practice price discrimination such that consumer surplus becomes profit,...
Suppose a monopolist faces consumer demand given by P 600 1Q with a constant marginal cost of $60 per unit (where marginal cost equals average total cost. asssume the firm has no fixed costs). If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output...
Suppose a monopolist faces consumer demand given by P 400-5Q with a constant marginal cost of $20 per unit (where marginal cost equals average total cost. assume the firm has no fixed costs) If the monopoly can only charge a single price, then it will earn profits of S(Enter your response rounded as a whole number.) Correspondingly, consumer surplus is S However, if the firm were to practice price discrimination such that consumer surplus becomes profit, then, holding output constant...
2. (10 points) Consider a monopolist that has costs equal to: C = 200 + 20 Q + 2 Q? And which faces a demand curve: Q = 1180-P a) How much will this monopolist offer to the market? What price will the monopolist charge? What are the profits of the monopolist? b) Draw a graph of your solution. c) What are the profits of the monopolist in the long-run? d) Is this monopolist a regulated monopolist or a natural...
A pharmaceutical company acquired a 10 year drug patent, making the company a monopolist in the corresponding market for this period. Suppose the marginal cost of producing the drug is zero and the demand curve has a downward slope and a positive intercept. (a) Plot the demand, marginal revenue and the marginal cost curves and show the quantity produced by the monopolist. (b) Suppose after the patent runs out, new firms enter the market for this particular drug and the...
Suppose that a monopolist faces the following costs and demand
for its product:
A. Complete the table above. (Draw your table on a piece of
paper, take a picture with your phone and then attach the image to
your answer here.)
B. Given that the monopolist wants to maximise profits, what
price will it charge, and how many units will it produce?
C. Suppose that the monopolist is able to engage in first degree
(perfect) price discrimination. How many units...
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