Given: Q = 50 - P and MC = 4+2Q. a) Determine the equilibrium price and quantity if this industry were purely compe...
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...
MR = 100 - 2q MC = 4 + 2q Under Perfect Competition EQ Price = 68 EQ Quantity = 32 CS = 512 PS = 1024 TW = 1536 Under Monopoly EQ Quantity = 24 EQ Price = 76 Now ... Calculate the Consumer Surplus, Producer Surplus and Welfare levels under monopoly. How much deadweight loss does the monopolist create? What could the government do to regulate the monopolist? Consider a situation where a monopolist faces the following inverse...
Question Pricel and sesl per un MC ogLeo P. H Demand MA Quantity What is the profit-maximizing quantity for this monopolist and what is the price they will charge? (1 point) What is the consumer surplus in this monopoly (you can use the letters)? (0.5 points) The gain in producer surplus in this monopoly market is represented by the area (0.5 points) (Use the letters) The deadweight loss in this monopoly is represented by the area points) (use letters) If...
Price and cost per unit $30 MC 24 АТС 22 20.80 20 18 Demand MR Quantity 104 62 83 Where is the profit-maximizing quantity and price for the monopoly represented above (1 point) a. Where is the profit-maximizing quantity and price if this monopoly where a perfect competition instead? (1 point) b. What is consumer surplus if this were a perfect competition instead (0.5 point) C. What is the gain in producer surplus under the monopoly? (0.5 point) d. What...
Price and cost per unit $30 MC ATC 24 22 20.80 20 18 Demand MR 62 83 104 Quantity Where is the profit-maximizing quantity and price for the monopoly represented above (1 point) a. b. Where is the profit-maximizing quantity and price if this monopoly where a perfect competition instead? (1 point) What is consumer surplus if this were a perfect competition instead (0.5 point) d. What is the gain in producer surplus under the monopoly? (0.5 point) What is...
1) Compared with a purely competitive industry, a monopolist produces a. more output at a lower price. b. less output at a higher price. c. more output at a higher price. d. less output at a lower price. 2) Which one of the following statements about monopoly firms and firms in a purely competitive industry is true? a. In the long run, monopoly firms and firms in a purely competitive industry operate at the minimum point of their average total...
Question 3 (4 points) Price and cost per unit Demand Quantity 1. What is the profit-maximizing quantity for this monopolist and what is the price they will charge? (1 point) 2. What is the consumer surplus in this monopoly (you can use the letters)? (0.5 points) 3. The gain in producer surplus in this monopoly market is represented by the area? (Use the letters)(0.5 point) 4. The deadweight loss in this monopoly is represented by the area?(0.5 points) 5. If...
Question 3 (4 points) Price and cost per unit Demand Quantity 1. What is the profit-maximizing quantity for this monopolist and what is the price they will charge? (1 point) 2. What is the consumer surplus in this monopoly (you can use the letters)? (0.5 points) 3. The gain in producer surplus in this monopoly market is represented by the area? (Use the letters)(0.5 point) 4. The deadweight loss in this monopoly is represented by the area?(0.5 points) 5. If...
Deadweight Loss Given the following information: Qs = 2P P = Qs/2 QD= 180 - 4P P = (QD -180)/-4 AR = P = 45-.25Q TR = 45 - .25Q2 Hint: MC – supply curve MR = 45 - 5Q Qs = supply Qd = demand Using the above information, Graph and calculate the price-output solution under competitive market assumptions. How much is the consumer surplus producer surplus and total surplus? Calculate the price and the...
3. Consider a uniform-price monopolist that faces demand curve P() 14 2Q and faces a total cost TC() 20 (a) Calculate the profit maximizing price and quantity erw erwyat er Patt Q= (b) Determine the consumer surplus, producer surplus, and deadweight loss erwyat erwy erwyatt CS = el DWL =