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Katrien runs a restaurant called the Heaven. Given the popularity and location of the restaurant, she...
D Question 5 1 pts Laura runs a nightclub called the 'Two Standard Drinks. Given the...
D Question 5 1 pts Laura runs a nightclub called the 'Two Standard Drinks. Given the popularity and cache of the club, she has a monopoly position in the market. The market demand curve is given by P = 120 - 9. Laura has a marginal cost per drink of MC = 2q and a fixed cost FC = $150. If Laura charges the same price to all customers. what are Laura's profit-maximising price PM and quantity qM? PM-590: -...
Problem 3: A market with a monopoly producer has inverse demand P = 120 - 2Q...
Problem 3: A market with a monopoly producer has inverse demand P = 120 - 2Q (which gives marginal revenue MR = 120 - 4Q). The monopolist has marginal costs are MCQ) = 4Q and no fixed costs. a) What is the monopolist's producer surplus when it charges the profit maximizing uniform price. b) What is the deadweight loss due to monopoly in this market? c) What would the monopolist's producer surplus be if it could engage in first degree...
2)Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue...
2)Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue and marginal cost curve for macadamia nuts are given as follows: P = 360 - 4Q. MR = 360 - 8Q. MC = 4Q e) At the profit maximizing level of output, what is the deadweight loss? f) What is the maximum amount that Maui Macadamia would be willing to spend in order to maintain its monopoly through rent seeking?
Scenario 11.1 Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve,...
Scenario 11.1 Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue and marginal cost curve for macadamia nuts are given as follows: P = 360 - 4Q; MR = 360 - 8Q; MC = 4Q 1. What level of output maximizes the sum of consumer surplus and producer surplus? 2. What is the profit-maximizing level of output? 3. At the profit-maximizing level of output, what is the level of consumer surplus? 4. At...
Hints: In problem 11.7 the marginal cost is 20. For both problems it will be useful...
Hints: In problem 11.7 the marginal cost is 20. For both problems it will be useful to know that for a linear demand curve, written with price as a function of quantity (P=0-bQ) marginal revenue is MR=a-2bQ. For problem 12.20, for some steps you will have to re-arrange the demand so to give price as a function of quantity rather than quantity as a function of price. Part a of 12.20 is the same as what we did in the...
2) Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal...
2) Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue and marginal cost curve for macadamia nuts are given as follows: P= 360 - 4Q M R = 360 - 8Q MC = 40 a) What level of output maximizes the sum of consumer surplus and producer surplus? b) What is the profit maximizing level of output? c) At the profit maximizing level of output, what is the level of consumer surplus? d)...
11.3 A single firm monopolizes the entire market for Batman masks and can produce at constant...
11.3 A single firm monopolizes the entire market for Batman masks and can produce at constant average and marginal costs of AC=MC=10: Originally, the firm faces a market demand curve given by Q=60-P a. Calculate the profit-maximizing price-quantity combination for the firm. What are the firm’s profits? b. Now assume that the market demand curve becomes steeper and is given by Q=45-0.5P with the marginal revenue function given by MR=90-4Q: What is the firm’s profit-maximizing price quantity combination now? What...
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...
1. You have the following information about a monopolist p = 60 − 2q (1) MR...
1. You have the following information about a monopolist p = 60 − 2q (1) MR = 60 − 4q (2) MC = 40 (3) where equation (1) is the demand curve, equation (2) is the marginal revenue function, and equation (3) is the marginal cost function, assumed to be constant here. (i). Under the perfect competition outcome, what would be the profit-maximizing level of output (qc) and price (pc)? (ii). Under the monopoly outcome, what would be the profit-maximizing...
Given the following diagranm Monopoly IGRAPH Regular Monopoly Natural Monopoly Off Off Show Deadweight Loss Show...
Given the following diagranm Monopoly IGRAPH Regular Monopoly Natural Monopoly Off Off Show Deadweight Loss Show Economic Profit/Loss ($) Price, Average/Marginal Cost 225 200 175 150 125-- 100 ATC MC-AVC 75 50 25 MR 0 20 4060 80 100 120 140 160 180 Quantity (units per month) PROFIT CALCULATIONS SETTINGS Reset $125.00 Market Price (Pmkt) Cost Structure LoeMarginal Revenue (MR) High Cost $50.00 Cost $95.00 Marginal Cost (MC) Quantity $7,500.00 $8,100.00 ($600.00) Revenue 120 40 Costs Quantity 60 Profit Instructions:...
D Question 5 1 pts Laura runs a nightclub called the 'Two Standard Drinks. Given the popularity and cache of the club, she has a monopoly position in the market. The market demand curve is given by P = 120 - 9. Laura has a marginal cost per drink of MC = 2q and a fixed cost FC = $150. If Laura charges the same price to all customers. what are Laura's profit-maximising price PM and quantity qM? PM-590: -...
Problem 3: A market with a monopoly producer has inverse demand P = 120 - 2Q (which gives marginal revenue MR = 120 - 4Q). The monopolist has marginal costs are MCQ) = 4Q and no fixed costs. a) What is the monopolist's producer surplus when it charges the profit maximizing uniform price. b) What is the deadweight loss due to monopoly in this market? c) What would the monopolist's producer surplus be if it could engage in first degree...
Hints: In problem 11.7 the marginal cost is 20. For both problems it will be useful to know that for a linear demand curve, written with price as a function of quantity (P=0-bQ) marginal revenue is MR=a-2bQ. For problem 12.20, for some steps you will have to re-arrange the demand so to give price as a function of quantity rather than quantity as a function of price. Part a of 12.20 is the same as what we did in the...
2) Maui Macadamia Inc. has a monopoly in the macadamia nut industry. The demand curve, marginal revenue and marginal cost curve for macadamia nuts are given as follows: P= 360 - 4Q M R = 360 - 8Q MC = 40 a) What level of output maximizes the sum of consumer surplus and producer surplus? b) What is the profit maximizing level of output? c) At the profit maximizing level of output, what is the level of consumer surplus? d)...
Given the following diagranm Monopoly IGRAPH Regular Monopoly Natural Monopoly Off Off Show Deadweight Loss Show Economic Profit/Loss ($) Price, Average/Marginal Cost 225 200 175 150 125-- 100 ATC MC-AVC 75 50 25 MR 0 20 4060 80 100 120 140 160 180 Quantity (units per month) PROFIT CALCULATIONS SETTINGS Reset $125.00 Market Price (Pmkt) Cost Structure LoeMarginal Revenue (MR) High Cost $50.00 Cost $95.00 Marginal Cost (MC) Quantity $7,500.00 $8,100.00 ($600.00) Revenue 120 40 Costs Quantity 60 Profit Instructions:...
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