1) you need to explain how a monopolist determines its optimal quantity and price in the...
1) you need to explain how a monopolist determines its optimal quantity and price in the market and how its excess profit is determined.
2)what measure does each country urgently need to implement to address the current global climate change?
Homework Answers
1. At the optimal output level, monopoly's profit is maximized. And the monoply produces it's profit maximizing quantity at the point where it's MR = MC and sets it's profit maximizing price at the point where profit maximizing quantity lies on the demand curve.
If at the profit maximizing output level, profit maximizing price is greater than ATC, then the monoply will earn profit. But if at the profit maximizing output level, ATC is greater than profit maximizing price, then the firm will experience negative profit or loss.
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1) you need to explain how a monopolist determines its optimal
quantity and price in the...
3. Assume that a monopolist produces a good at constant marginal cost MC(q) = 1. Demand...
3. Assume that a monopolist produces a good at constant marginal cost MC(q) = 1. Demand is given by PD (q) = 10 – 2q. There are no other pre-existing distortions in the market. (a) What is the privately optimal quantity and price chosen by the monopolist? For parts (b) and (c), assume that a tax of $t is imposed on every unit of output produced by the monopolist. (b) Derive the optimal quantity and price chosen by the monopolist...
Monoetronic is a monopolist selling wireless glucose monitors for patients with diabetes. Suppose its marginal cost...
Monoetronic is a monopolist selling wireless glucose monitors for patients with diabetes. Suppose its marginal cost is $200. Suppose its inverse demand curve in the U.S. is pa = 1,500 – 2qa and the inverse demand curve in Canada is pc = 1,000 – qc Assume that Canadian customers cannot buy Monoetronic’s wireless glucose monitors from the American market (i.e., resale is impossible). (a) What are the company’s profit-maximizing quantity and price in the U.S.? What are the profit-maximizing quantity...
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...
1) A monopolist firm sells its output in two regions: Califomia and Florida. The demand curves...
1) A monopolist firm sells its output in two regions: Califomia and Florida. The demand curves for each market are QF15-PF OF and Qc are measured in 1000s of units, so you may get decimal values for Q. If P-$10 and Q-1, the profit of S10 that you calculate is actually $10,000). Qc 12.5 - 2 Pc The monopoly's cost function is C 5+3Q5+3(QF+Qc) First, we'll assume that the monopoly can only charge one price in both markets. a) Calculate...
A firm's market demand for its product in the company’s country, a, is given by Qa(Pa)...
A firm's market demand for its product in the company’s country, a, is given by Qa(Pa) = 1,050 − 4Pa, where Qa is the quantity of products produced per year and Pa is the price product. Cost of producing this product is ?(Q) = 70,125 + 0.0125Q2. This implies a marginal cost of production of ?C(q) = 0.025Q. a) Find the profit-maximizing price and quantity. Compute the firm’s profit in this case. Should the firm shut down in the short...
For each price in the following table, calculate the firm's optimal quantity of units to produce,...
For each price in the
following table, calculate the firm's optimal quantity of units to
produce, and determine the profit or loss if it produces at that
quantity, using the data from the previous graph to identify its
total variable cost. Assume that if the firm is indifferent between
producing and shutting down, it will produce.
(Hint: You can select the purple points [diamond
symbols] on the previous graph to see precise information on
average variable cost.)
If the firm...
Notes: Show all calculations. Draw neat graphs Price discrimination by a monopolist A profit-maxi...
help with #7, please!
Notes: Show all calculations. Draw neat graphs Price discrimination by a monopolist A profit-maximizing monopolist sells the same good in 3 separate markets. The demand functions and cost function are given below Demand in Market 1: P 80-4Q, Demand in Market 2: P,-100 50 Demand in Market 3: P,-70 - 60, Cost function: C- 20 +2-4Q, where Q is total output, 1. (4 points) Obtain the firm's profit function in terms of the three choice variables...
3. Assume that a monopolist produces a good at constant marginal cost MC(q) = 1. Demand...
3. Assume that a monopolist produces a good at constant marginal cost MC(q) = 1. Demand is given by pºq) = 10 - 2q. There are no other pre-existing distortions in the market. (a) What is the privately optimal quantity and price chosen by the monopolist? For parts (b) and (c), assume that a tax of $t is imposed on every unit of output produced by the monopolist. (b) Derive the optimal quantity and price chosen by the monopolist as...
Chapter 11 1. You are a self-employed profit-maximization consultant specializing in monopolies. Five single-price, profit-maximizing monopolies...
Chapter 11 1. You are a self-employed profit-maximization consultant specializing in monopolies. Five single-price, profit-maximizing monopolies are currently seeking your advice, and al- though the information they have supplied to you is incomplete, your expert knowledge allows you to go back and make a definite recommendation in each case. Select one of the following recommendations for each firm in the short run: a. Remain at the current output level. b. Increase output. c. Reduce output. d. Shut down. e. Go...
1. A monopolist with marginal cost of production of 40 sells to two distinct consumers. For...
1. A monopolist with marginal cost of production of 40 sells to two distinct consumers. For consumer 1, demand is given by Q1 = 300 - P1. For consumer 2, it is given by Q2 = 180 - P2. a. Determine the optimal uniform price and output when discrimination is impossible. b. Assume third-degree discrimination between the two consumers is possible. What price will be set for each consumer? What quantity will be sold for each consumer? c. How does...
3. Assume that a monopolist produces a good at constant marginal cost MC(q) = 1. Demand is given by PD (q) = 10 – 2q. There are no other pre-existing distortions in the market. (a) What is the privately optimal quantity and price chosen by the monopolist? For parts (b) and (c), assume that a tax of $t is imposed on every unit of output produced by the monopolist. (b) Derive the optimal quantity and price chosen by the monopolist...
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...
1) A monopolist firm sells its output in two regions: Califomia and Florida. The demand curves for each market are QF15-PF OF and Qc are measured in 1000s of units, so you may get decimal values for Q. If P-$10 and Q-1, the profit of S10 that you calculate is actually $10,000). Qc 12.5 - 2 Pc The monopoly's cost function is C 5+3Q5+3(QF+Qc) First, we'll assume that the monopoly can only charge one price in both markets. a) Calculate...
For each price in the
following table, calculate the firm's optimal quantity of units to
produce, and determine the profit or loss if it produces at that
quantity, using the data from the previous graph to identify its
total variable cost. Assume that if the firm is indifferent between
producing and shutting down, it will produce.
(Hint: You can select the purple points [diamond
symbols] on the previous graph to see precise information on
average variable cost.)
If the firm...
help with #7, please!
Notes: Show all calculations. Draw neat graphs Price discrimination by a monopolist A profit-maximizing monopolist sells the same good in 3 separate markets. The demand functions and cost function are given below Demand in Market 1: P 80-4Q, Demand in Market 2: P,-100 50 Demand in Market 3: P,-70 - 60, Cost function: C- 20 +2-4Q, where Q is total output, 1. (4 points) Obtain the firm's profit function in terms of the three choice variables...
3. Assume that a monopolist produces a good at constant marginal cost MC(q) = 1. Demand is given by pºq) = 10 - 2q. There are no other pre-existing distortions in the market. (a) What is the privately optimal quantity and price chosen by the monopolist? For parts (b) and (c), assume that a tax of $t is imposed on every unit of output produced by the monopolist. (b) Derive the optimal quantity and price chosen by the monopolist as...
Chapter 11 1. You are a self-employed profit-maximization consultant specializing in monopolies. Five single-price, profit-maximizing monopolies are currently seeking your advice, and al- though the information they have supplied to you is incomplete, your expert knowledge allows you to go back and make a definite recommendation in each case. Select one of the following recommendations for each firm in the short run: a. Remain at the current output level. b. Increase output. c. Reduce output. d. Shut down. e. Go...
1. A monopolist with marginal cost of production of 40 sells to two distinct consumers. For consumer 1, demand is given by Q1 = 300 - P1. For consumer 2, it is given by Q2 = 180 - P2. a. Determine the optimal uniform price and output when discrimination is impossible. b. Assume third-degree discrimination between the two consumers is possible. What price will be set for each consumer? What quantity will be sold for each consumer? c. How does...
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