Homework Answers
Ques 1.
a. The profit maximizing output is 25 units where Marginal Revenue curve intersects the Marginal Cost curve. The price for this market is $10.
b. Monopoly profit = (10-6)×25 = $100
c. The monopoly profit is considered a market failure as the market generates a deadweight loss and the quantity that is produced by a monopolist is not efficient too.
3. The following graph illustrates a monopoly market. MC = ATC Output The government intervenes in...
3. The following graph illustrates a monopoly market. MC = ATC Output The government intervenes in the market and regulates the monopolist to charge the perfectly competitive market price. That is, regulation forces the monopoly firm to behave as if it was a perfectly competitive firm. a. What price would the firm charge under regulation; i.e. what is the perfectly competitive market price be and why? (10 points) b. What output would the firm produce under regulation; i.e. what is...
ATC 57 51 30 27 AVC 23 20 16 МС, 12 0 10 12 60 70...
ATC 57 51 30 27 AVC 23 20 16 МС, 12 0 10 12 60 70 P-$30 results in Qºo1 00 AATC 57 51 30 AVC 20 16 MC 12 0 10 12 60 70 P-516 results an Q with an ATC of $. 51 GE ATC 57 51 30 27 AVC 23 20 MC 12 0 10 12 60 70 P=512 results with an ATOOS WATC 67 61 33 30 27 AVC 23 20 16 MO 12 10 12...
Price/Cost ($) 7) Monopoly II (6 points) The marginal costs (MC), average variable costs (AVC), and...
Price/Cost ($) 7) Monopoly II (6 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopoly are shown in the figure below. The figure also shows the demand curve (D) and the marginal revenue curve (MR) for this market. 501 ATC AVC a. What is the firm's profit-maximizing level of output? Label this on the graph. b. What price will the monopolist charge for that level of output? Label this on the graph....
17a) Assuming the monopoly pictured is a profit-maximizing monopoly, what price will the monopoly charge for...
17a) Assuming the monopoly pictured is a profit-maximizing
monopoly, what price will the monopoly charge for its output?
A: $4
B: $5
C: $6
D: $7
E: $8
17b) Assuming the monopoly (above picture, 16a) a
profit-maximizing monopoly, what quantity of output would maximize
revenue?
A: 1
B: 2
C: 3
D: 4
E: 5
8 7 6 5 4 ATC=MC 3 2 1 MR P=D 0 1 2 3 4 5 6 7 8 9 10 Quantity (millions)
Calculate the deadweight loss associated with the monopoly situation shown. Price and Cost мс $13 $10...
Calculate the deadweight loss associated with the monopoly situation shown. Price and Cost мс $13 $10 $7 D 100 140 Market Quantity (Units) $ Click or tap the numbers or use your keyboard to type. If you 're not sure, just take a guess. 6 7 89 0 1 2 3 4 5 Done MR
Price MC ATC AVC - MR 40 45 47 Quantity a. (1 points) Using the graph...
Price MC ATC AVC - MR 40 45 47 Quantity a. (1 points) Using the graph above, what is the profit maximizing or loss minimizing output and price? b. (1 point)Using the graph above, what is the profit or loss for the profit maximizing firm? c. (2 points) What would happen in this market in the long run. Be sure to explain in detail what happens in the market and the firm. What would be the long run price, and...
Hi, Can anyone solve this question ? Exercise 2: Monopoly Assume a monopoly market with a...
Hi, Can anyone solve this
question ?
Exercise 2: Monopoly Assume a monopoly market with a demand curve of Q(p) = 10 – p and marginal cost, which are constant at 4. a) What is the profit-maximizing monopoly price and output? Illustrate your answer in a graph! b) What is the price elasticity at the monopoly price and output? What are the effects if a social planer regulates the price?
Use Figure 1 to answer questions 1-2. Figure 1 Dollars ATC Output 100 150 180 210...
Use Figure 1 to answer questions 1-2. Figure 1 Dollars ATC Output 100 150 180 210 1 Which price corresponds to the breakeven point on the graph? 2. Which price corresponds to the shut-down point on the graph? Use Figure 2 to answer questions 3-5. Figure 2 Dollars MC ATC AVC Output 100 150 180 210 Assume that the market price is $25. 3. Should the firm produce or shutdown? Why? 4. What is the firm's profit maximizing output level?...
I need help with parts H, I, and J only please Part II Monopoly P ATC...
I need help with parts H, I, and J only please
Part II Monopoly P ATC 20 MC 17 15 13 9 6 D 0 40 50 55 90 Q MR A) What is the profit maximizing output level for this monopolist? B) What is the profit maximizing price this monopolist will charge? C) The total revenue of this monopolist is equal to? D) What is the ATC of this monopolist when it maximizes its profit? E) What is the...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier than by many competing suppliers, the market is considered to be a(n): rent-seeking monopoly. unregulated monopoly. natural monopoly. efficient monopoly. 1. a. b. с. d. Use the graph depicting an unregulated profit-maximizing monopolist that cannot price discriminate to answer questions 2 through 4 S МC ATC $6.00 $5.20 $4.80 AVC $3.00 D MR. tob Output 800 1,000 1,125 units of output and charge a...
3. The following graph illustrates a monopoly market. MC = ATC Output The government intervenes in the market and regulates the monopolist to charge the perfectly competitive market price. That is, regulation forces the monopoly firm to behave as if it was a perfectly competitive firm. a. What price would the firm charge under regulation; i.e. what is the perfectly competitive market price be and why? (10 points) b. What output would the firm produce under regulation; i.e. what is...
ATC 57 51 30 27 AVC 23 20 16 МС, 12 0 10 12 60 70 P-$30 results in Qºo1 00 AATC 57 51 30 AVC 20 16 MC 12 0 10 12 60 70 P-516 results an Q with an ATC of $. 51 GE ATC 57 51 30 27 AVC 23 20 MC 12 0 10 12 60 70 P=512 results with an ATOOS WATC 67 61 33 30 27 AVC 23 20 16 MO 12 10 12...
Price/Cost ($) 7) Monopoly II (6 points) The marginal costs (MC), average variable costs (AVC), and average total costs (ATC) for a monopoly are shown in the figure below. The figure also shows the demand curve (D) and the marginal revenue curve (MR) for this market. 501 ATC AVC a. What is the firm's profit-maximizing level of output? Label this on the graph. b. What price will the monopolist charge for that level of output? Label this on the graph....
17a) Assuming the monopoly pictured is a profit-maximizing
monopoly, what price will the monopoly charge for its output?
A: $4
B: $5
C: $6
D: $7
E: $8
17b) Assuming the monopoly (above picture, 16a) a
profit-maximizing monopoly, what quantity of output would maximize
revenue?
A: 1
B: 2
C: 3
D: 4
E: 5
8 7 6 5 4 ATC=MC 3 2 1 MR P=D 0 1 2 3 4 5 6 7 8 9 10 Quantity (millions)
Calculate the deadweight loss associated with the monopoly situation shown. Price and Cost мс $13 $10 $7 D 100 140 Market Quantity (Units) $ Click or tap the numbers or use your keyboard to type. If you 're not sure, just take a guess. 6 7 89 0 1 2 3 4 5 Done MR
Price MC ATC AVC - MR 40 45 47 Quantity a. (1 points) Using the graph above, what is the profit maximizing or loss minimizing output and price? b. (1 point)Using the graph above, what is the profit or loss for the profit maximizing firm? c. (2 points) What would happen in this market in the long run. Be sure to explain in detail what happens in the market and the firm. What would be the long run price, and...
Hi, Can anyone solve this
question ?
Exercise 2: Monopoly Assume a monopoly market with a demand curve of Q(p) = 10 – p and marginal cost, which are constant at 4. a) What is the profit-maximizing monopoly price and output? Illustrate your answer in a graph! b) What is the price elasticity at the monopoly price and output? What are the effects if a social planer regulates the price?
Use Figure 1 to answer questions 1-2. Figure 1 Dollars ATC Output 100 150 180 210 1 Which price corresponds to the breakeven point on the graph? 2. Which price corresponds to the shut-down point on the graph? Use Figure 2 to answer questions 3-5. Figure 2 Dollars MC ATC AVC Output 100 150 180 210 Assume that the market price is $25. 3. Should the firm produce or shutdown? Why? 4. What is the firm's profit maximizing output level?...
I need help with parts H, I, and J only please
Part II Monopoly P ATC 20 MC 17 15 13 9 6 D 0 40 50 55 90 Q MR A) What is the profit maximizing output level for this monopolist? B) What is the profit maximizing price this monopolist will charge? C) The total revenue of this monopolist is equal to? D) What is the ATC of this monopolist when it maximizes its profit? E) What is the...
MONOPOLY If electrical service can be more efficiently provided to a market by a single supplier than by many competing suppliers, the market is considered to be a(n): rent-seeking monopoly. unregulated monopoly. natural monopoly. efficient monopoly. 1. a. b. с. d. Use the graph depicting an unregulated profit-maximizing monopolist that cannot price discriminate to answer questions 2 through 4 S МC ATC $6.00 $5.20 $4.80 AVC $3.00 D MR. tob Output 800 1,000 1,125 units of output and charge a...
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