Consider a monopolist who has constant marginal cost of $20 and no fixed cost. This monopolist...
Consider a monopolist who has constant marginal cost of $20 and no fixed cost. This monopolist can distinguish between students and non-students. The demand function for each consumer group is as follows: Students: P = 200 − Q. Non-students: P = 400 − 2Q.
(a) Find the profit-maximizing quantity to sell to each group.
(b) Find the profit-maximizing price to charge to each group.
(c) Calculate the monopolist’s profit.
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Consider a monopolist who has constant marginal cost of $20 and
no fixed cost. This monopolist...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal...
A monopolist’s inverse demand is P=500-2Q, the total cost function is TC=50Q2 + 1000Q and Marginal cost is MC=100Q+100, where Q is thousands of units. a). what price would the monopolist charge to maximize profits and how many units will the monopolist sell? (hint, recall that the slope of the MARGINAL Revenue is twice as steep as the inverse demand curve. b). at the profit-maximizing price, how much profit would the monopolist earn? c). find consumer surplus and Producer surplus...
26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5...
26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5 and a linear demand curve of P = 20-2Q, where P is the price the monopolist charges and Q is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue, which has the same intercept as the demand curve but twice as steep. Obtain the monopolist's marginal revenue, optimal output, and price.
Suppose a monopolist faces the following demand curve: P = 440 – 7Q. The long run marginal cost of production is constant and equal to $20, and there are no fixed costs. A) What is the monopolist’s...
Suppose a monopolist faces the following demand curve: P = 440 – 7Q. The long run marginal cost of production is constant and equal to $20, and there are no fixed costs. A) What is the monopolist’s profit maximizing level of output? B) What price will the profit maximizing monopolist produce? C) How much profit will the monopolist make if she maximizes her profit? D) What would be the value of consumer surplus if the market were perfectly competitive? E)...
Explain with rules Consider a monopolist who encountered a constant average and marginal cost of $5...
Explain with rules
Consider a monopolist who encountered a constant average and marginal cost of $5 and a linear demand function given by P-20-2Q, where P is the price the monopolist charges and O is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue function, which has the same intercept as the demand function but twice as steep. 1. Obtain the monopolist's MR function, optimal output and price. 2. Without...
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve give...
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer are non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is true if the monopolist practices third degree price discrimination? Total profit earned equals 2150. Total profit earned equals 2250 Total profnt earned equals...
Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximi...
Consider a monopolist facing the demand curve p = 90 − 2q with cost function c(q) = 0.25q^2 . (a) Find the profit-maximizing quantity qm and price pm. What are the monopolist’s profits? (b) What is the value of the Lerner index at qm? (c) Find the efficient quantity and draw a graph depicting the deadweight loss under monopoly.
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...
26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5...
26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5 and a linear demand curve of P = 20-20, where P is the price the monopolist charges and Q is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue, which has the same intercept as the demand curve but twice as steep. Obtain the monopolist's marginal revenue, optimal output, and price.
A monopolist with constant average and marginal cost equal to 10 (AC = MC = 10)...
A monopolist with constant average and marginal cost equal to 10 (AC = MC = 10) faces demand Q = 100 - 2P, implying that its marginal revenue is MR = 100 - 4Q. Its profit maximizing quantity is Group of answer choices 22.5 45 90 80
Consider a single-price monopolist (i.e. the monopolist cannot price discriminate) facing the following market demand curve:...
Consider a single-price monopolist (i.e. the monopolist cannot price discriminate) facing the following market demand curve: P = 120 − Q. The monopolist has constant marginal cost of $20 and zero fixed cost. (a) Determine the monopolist’s profit maximizing quantity, denoted QM, and profit maximizing price, denoted PM. (b) Determine the quantity and price that would result in the market if this instead were a competitive market, denoted QC and PC, respectively. (c) Draw a picture of the market demand...
26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5 and a linear demand curve of P = 20-2Q, where P is the price the monopolist charges and Q is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue, which has the same intercept as the demand curve but twice as steep. Obtain the monopolist's marginal revenue, optimal output, and price.
Explain with rules
Consider a monopolist who encountered a constant average and marginal cost of $5 and a linear demand function given by P-20-2Q, where P is the price the monopolist charges and O is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue function, which has the same intercept as the demand function but twice as steep. 1. Obtain the monopolist's MR function, optimal output and price. 2. Without...
D Question 17 1 pts Consider a monopolist that has two types of consumers. The first, students have a demand curve given by the following: QA-120-2P. The second type of consumer are non-students who have the following demand curve: QB-200-4P. If the monopolist has constant marginal and average cost equal to 10, which of the following is true if the monopolist practices third degree price discrimination? Total profit earned equals 2150. Total profit earned equals 2250 Total profnt earned equals...
1. Suppose that a single-price monopolist faces the demand function P 100 Q where I is average weekly household income, and that the firm's marginal cost function is given by MC(Q) 2Q. The firm has no fixed costs. = (a) If the average weekly household income is $600, find the firm's marginal revenue function. (b) What is the firm's profit-maximizing quantity of output? At what price will the firm sell that output? What will the firm's marginal cost be? (c)...
26. (8 points) Consider a monopolist who faces a constant average and marginal cost of $5 and a linear demand curve of P = 20-20, where P is the price the monopolist charges and Q is the quantity consumers purchase. To obtain the optimal quantity and price, the monopolist needs to obtain the marginal revenue, which has the same intercept as the demand curve but twice as steep. Obtain the monopolist's marginal revenue, optimal output, and price.
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