A monopolist is facing the following demand curve P = 50 − 5Q. The monopolist has...
A monopolist is facing the following demand curve P = 50 − 5Q. The monopolist has the following marginal cost MC = 10. The monopolist knows exactly the willingness to pay of each individual consumer and charge consumers individual prices. Calculate the deadweight loss in this case.
(a) DWL=0
(b) DWL=10
(c) DWL=5
(d) None of the above.
Homework Answers
ANswer
Option a
DWL =0
The monopolist produces up to Marginal cost equal to price so the market is efficient and there is no deadweight loss in the market.
Add Answer to:
A monopolist is facing the following demand curve P = 50 − 5Q.
The monopolist has...
7. A monopolist in the market for widgets is facing a demand curve P= 60 -...
7. A monopolist in the market for widgets is facing a demand curve P= 60 - Q. The marginal cost of producing Q units is equal to $Q. (a) Calculate the monopolist's profit maximizing price and quantity. Calculate producer, consumer, and total surplus, and deadweight loss. (b) The government wants to impose a price ceiling that will maximize the total surplus in the market. What price ceiling should the government set? What would be the new values of consumer and...
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...
3. Consider a monopolist facing two customer groups. The first has demand q1 = 50−2p1 and...
3. Consider a monopolist facing two customer groups. The first has demand q1 = 50−2p1 and the second has demand q2 = 60−p2. The firm has marginal cost MC(q) = q, where q = q1 +q2 is the total amount sold. (a) Suppose it could first degree price discriminate and charge the full willingness to pay for every unit. How many units does it sell to each group? (b) Suppose it can separate customers into the two groups (third degree...
1. A monopoly is facing an inverse demand curve that is p=200-5q. There is no fixed cost and the marginal cost of produc...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
Suppose the demand curve for a product is P=12-.5Q. Which of the following is accurate? 12....
Suppose the demand curve for a product is P=12-.5Q. Which of
the following is accurate?
12. Suppose the demand curve for a product is P 12-0.50. Which of the following is accurate? a. The maximum willingness to pay for the 10th unit is $7. b. If the price is $8, the quantity demanded is 4 units. c. The maximum willingness to pay for the 8th unit is $10. d. If the price is $6, the quantity demanded is 10 units....
Name: Consider the market for a good where the demand curve facing a firm who has...
Name: Consider the market for a good where the demand curve facing a firm who has considerable market power is given by P = 80 -0.05Q, the marginal revenue curve is given by MR = 80 -0.1Q, and the firm's marginal cost curve is given by MC = 17 + 0.020. a. If the firm behaves like a competitive firm, find equilibrium price and quantity. Graphically identify and calculate consumer and producer surplus. b. If the firm behaves like a...
If a monopolist faces a demand curve given by the equation P=200-5Q, and their MC=ATC=20, then...
If a monopolist faces a demand curve given by the equation P=200-5Q, and their MC=ATC=20, then the consumer surplus resulting from the monopoly price will be... a. $660 b. $880 c. $990 d. $770
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 firm with market power has an inverse demand curve of P = 450 - 5Q...
A firm with market power has an inverse demand curve of P = 450 - 5Q and marginal cost of MC = 400, where Q is measured in thousands. What is the deadweight loss from market power at the firm's profit-maximizing output level? $15,000 $280,000 $22.500 $9.400
Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost...
Uniform pricing monopolist has the following demand curve for its product: C(Q)=20Q, P=100-Q. The Marginal Cost is MC=20 and the Marginal Revenue is MR=100-2Q. 1. Find the monopolist Quantity and Price. 2.Find the Deadweight loss relative to the perfectly competitive outcome. 3. A. Calculate the welfare for the monopoly market, before and after the introduction of a price ceiling. B. Which scenario do the consumers prefer?
7. A monopolist in the market for widgets is facing a demand curve P= 60 - Q. The marginal cost of producing Q units is equal to $Q. (a) Calculate the monopolist's profit maximizing price and quantity. Calculate producer, consumer, and total surplus, and deadweight loss. (b) The government wants to impose a price ceiling that will maximize the total surplus in the market. What price ceiling should the government set? What would be the new values of consumer and...
1. A monopoly is facing an inverse demand curve that is
p=200-5q. There is no fixed cost and the marginal cost of
production is given and it is equal to 50.
Find the total revenue function.
Find marginal revenue (MR).
Draw a graph showing inverse demand, MR, and marginal cost
(MC).
Find the quantity (q) that maximizes the profit.
Find price (p) that maximizes the profit.
Find total cost (TC), total revenue (TR), and profit made by
this firm.
Find...
Suppose the demand curve for a product is P=12-.5Q. Which of
the following is accurate?
12. Suppose the demand curve for a product is P 12-0.50. Which of the following is accurate? a. The maximum willingness to pay for the 10th unit is $7. b. If the price is $8, the quantity demanded is 4 units. c. The maximum willingness to pay for the 8th unit is $10. d. If the price is $6, the quantity demanded is 10 units....
Name: Consider the market for a good where the demand curve facing a firm who has considerable market power is given by P = 80 -0.05Q, the marginal revenue curve is given by MR = 80 -0.1Q, and the firm's marginal cost curve is given by MC = 17 + 0.020. a. If the firm behaves like a competitive firm, find equilibrium price and quantity. Graphically identify and calculate consumer and producer surplus. b. If the firm behaves like a...
A firm with market power has an inverse demand curve of P = 450 - 5Q and marginal cost of MC = 400, where Q is measured in thousands. What is the deadweight loss from market power at the firm's profit-maximizing output level? $15,000 $280,000 $22.500 $9.400
Most questions answered within 3 hours.
-
How can I solve the following using a TI83
Claim: Most adults would erase all of...
asked 8 minutes ago -
Analysis of 3-ethyl-3-buten-2-ol gave C, 72.13%; H, 11.92%.
Calculate the percent deviation of these results from...
asked 5 minutes ago -
Which VALS segment is most likely to have a top of the line
brand new (2015)...
asked 9 minutes ago -
Write a program to score the paper-rock-scissor game. Each of
two users types in either P,R...
asked 29 minutes ago -
Calculate the equillibrium constent K for a redox reaction that
has E°cell = -.98 V at...
asked 42 minutes ago -
A concave spherical mirror has a radius of curvature of
magnitude 19.6 cm.
(a) Find the...
asked 43 minutes ago -
3. draw a diagram of the magnetic field:
a. around a long straight wire with a...
asked 42 minutes ago -
If you titrated 30.0 mL of 0.1 M HCl with 0.1 M NaOH, indicate
the approximate...
asked 50 minutes ago -
NADH passes electrons into the electron transport chain. List
the carriers that would receive the electrons,...
asked 59 minutes ago -
A cylindrical cable with a resistivity of 1.6x10-8 Ω·m and cross
sectional area of 3x10-5 m^2...
asked 58 minutes ago -
True or False.
A consumer with convex preferences who is indifferent between
the bundles (5,2) and...
asked 1 hour ago -
A diamond's index of refraction for red light, 656 nm, is 2.410,
while that for blue...
asked 1 hour ago