econ monopoly workbook

The market demand for a monopoly is given by P = 90 – 2Q, where Q is the number of the product demanded at price P. The total cost function is given by TC = 90 + 20Q +0.5Q2. a) If the firm is a single-price monopoly, what are the equilibrium quantity and price? What are the resultant consumer surplus, producer surplus and social welfare? b) If the government forced the firm to behave as if it were a perfect competitor, what are the equilibrium quantity and price? What are the resultant consumer surplus, producer surplus and social welfare? c) How much does social welfare increase when the firm moves from monopoly to competition?

If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $ 28800. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS=$ W = $ DWL = $ A

A monopoly profit-maximizes by selling 700 tables each hour. At this level of production, it has marginal revenue of $40, average revenue of $50, marginal cost of $40 and average total cost of $42. What is the monopoly's profit-maximizing price assuming they are not price discriminating? Type your numeric answer and submit

If a monopoly faces an inverse demand curve of p=450-Q, has a constant marginal and average cost of $30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $88200. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is Profit from single-price profit-maximization is = $44100. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS = $0 W = $ 88200 DWL = $0. CS = $ 22050 W = $ 66150 DWL = $ 22050

What is the price (p) and output (q) level for profit maximization under monopoly structure? Find the total revenue (TR) for monopoly firm (refer to rectangle OABE) Find the total cost (TC) for monopoly firm (refer to rectangle ODCE) Find total profit (or loss) for monopoly firm (refer to rectangle ABDC) Note: Show the formula and calculation

You are the manager of a monopoly, and your demand and cost functions are given by P = 300 – 3Q and C(Q) = 1,500 + 2Q2, respectively. What price-quantity combination maximizes your firm’s profits? Calculate the maximum profits. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price-quantity combination? What price-quantity combination maximizes revenue? Calculate the maximum revenues? Is demand elastic, inelastic, or unit elastic at the revenue-maximizing price-quantity combination?

The figure shows the market demand curve for penicillin, an antibiotic medicine. Initially, the market was supplied by perfectly competitive firms Later, the government granted the exclusive right to produce and sell penicillin to one firm. The figure also shows the marginal revenue curve (MR) of the firm once it begins to operate as a monopoly. The marginal cost is constant at $3, irrespective of the market structure What is the surplus enjoyed by the firm when it is the sole supplier of the medicine? OA. 590 OB. $180 OC. $30 OD. $60 Price/Cost (5) 10 1 10 20 30 40 MR Demand 50 60 70 80 90 Quantity (units)

The demand and total cost functions for a monopoly firm are:Q(P) = 39.5 – 0.5PTC(Q) = 60 – Q + 0.5 Q2a) Plot the demand, marginal revenue, marginal cost, and average total cost curves, including the intersections with the horizontal and vertical axes. b) What are the profit maximising QM and PM for this firm? c) What is the firm’s profit πM? d) What are the firm's fixed and variable costs? e) What would be the socially optimal Q* and P* (round to 1 decimal place if needed)?

The figure shows the market demand curve for penicillin, an antibiotic medicine. Initially, the market was supplied by perfectly competitive firms. Later, the government granted the exclusive right to produce and sell penicillin to one firm. The figure also shows the marginal revenue curve (MR) of the firm once it begins to operate as a monopoly. The marginal cost is constant at $3. irrespective of the market structure. After the market changes from perfect competition to a monopoly.. OA. social surplus decreases OB. consumer surplus increases. OC. deadweight loss decreases OD. the market price decreases -COD- Price/Cost (5) 10 9 10 20 30 MR 40 60 00 Demand 70 BO so Quanety (units)

Consider a market with a common demand function given by Q = 100 - 2P, where Q represents quantity and P represents price. The total cost function for firms in this market is TC=1000+ 50². a) For a monopoly, calculate the profit-maximizing price, quantity, consumer surplus, producer surplus, and deadweight loss. b) Compare the monopoly equilibrium to the equilibrium in perfect competition. Calculate the price, quantity, consumer surplus, producer surplus, and deadweight loss under perfect competition. c) Use a single graph to illustrate both the monopoly and perfect competition equilibriums. 4

Examine the fundamental concepts of monopoly and profit maximization in the context of a monopolist facing a specific total cost function and demand function. Discuss the implications of the given total cost function TC = 550 + 6Q +0.2Q^2 and demand function Q = 1 00-3P on the monopolist's production and pricing decisions. Explore the process of determining the profit-maximizing quantity and price and analyze the economic rationale behind these calculations. Discuss the relationship between marginal cost, marginal revenue, and elasticity of demand in the monopolistic setting, and consider how these factors influence the monopolist's output and pricing strategy. Please calculate and find answer detailly step by step because I want to understand how calculate this type of exercises. And please don't put answers of other experts which answered this question before I asked you.Do calculations right. Because of wrong calculation i use my another question chance.

You are the manager of a monopoly that faces an inverse demand curve of P = 10 − Q and has a cost function of C(Q) = 2Q. The government is considering legislation that would regulate your price at the competitive level. What is the maximum amount you would be willing to spend on lobbying activities designed to stop the regulation?

what is the profit from perfect price discrimination?

Consider the relationship between monopoly pricing and the price elasticity of demand. If demand is inelastic and a monopolist raises its price, quantity would fall by a percentage than the rise in price, causing profit to Therefore, a monopolist will produce a quantity at which the demand curve is elastic. Use the purple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal- revenue (MR) curve.) Then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (TR). (? 10 Demand Inelastic Demand 6 5 Max TR 3 2 1 -1 -2 Marginal Revenue -3 -4 1 2 3 4 5 7 8 9 10 Quantity

Which of the following is true under monopoly? Selected Answer: Profits are always positive Answers: Profits are always positive P> MC P = MR All of the above are true for monopoly

Waterker is the only company selling the gorgeous Perspective fountain pens. The cost to produce q pens is C(q) = 0.5q² + 10. (In the long run, all costs are avoidable.) The demand for these incredible pens is given by p(a) = 132 - q/10. How much deadweight loss is generated by Waterker's monopoly on the Perspective? Enter a numerical value below. You may round to the second decimal if necessary.

b) The market demand curve for a monopoly firm is given as P= 200 - 20. Furthermore, the marginal cost is represented by the equation MC = 20 + 2Q. The firm's TC can be expressed as TC 20Q + Q + 100. Use this information to answer the questions and calculate the following: i) Profit maximizing quantity and price.

The demand and total cost functions for a monopoly firm are: Q(P) = 39.5 – 0.5P TC(Q) = 60 – Q + 0.5 Q What are the firm's fixed and variable costs?

Which of the following is not a characteristic of a natural monopoly? Group of answer choices demand is perfectly elastic economies of scale a single firm can supply the entire market at a lower cost than two or more firms the MC curve never crosses the AC curve

You are the manager of a monopoly, and your demand and cost functions are given by P = 200 − 2Q and C(Q) = 1,400 + 2Q2, respectively.   What price–quantity combination maximizes your firm’s profits? Calculate the maximum profits. Is demand elastic, inelastic, or unit elastic at the profit-maximizing price–quantity combination?

Consider the relationship between monopoly pricing and the price elasticity of demand. If demand is inelastic and a monopolist raises its price, total revenue would (DECREASE OR INCREASE)  and total cost would(DECREASE OR INCREASE)   . Therefore, a monopolist will (SOMETIMES, ALWAYS, NEVER)    produce a quantity at which the demand curve is inelastic.   Use the purple segment (diamond symbols) to indicate the portion of the demand curve that is inelastic. (Hint: The answer is related to the marginal-revenue (MR) curve.) Then use the black point (plus symbol) to show the quantity and price that maximizes total revenue (TR).

You own a road resurfacing business called Dahyun Bricks services located in Seoul. You are the only reservicing business in South Korea. Therefore, you have a local monopoly. Your experience running the company for many years has taught you that market demand for your service can be described by the demand function: p = 20 - Q. The cost function is c =q². Therefore, marginal cost equals 2q. Quantity refersto square metre of road resurfacing. Note the Q denotes aggregate market demand and q denotes your production. Of course, if you are the only supplier than q = Q. a) Compute profit maximising price and output. Compute profits. b) The monopoly profit that you have been earning has attracted attention from another firm that will set up operations in South Koreaand compete for market share. You are concerned with losing market share and profit. So, you offer the potential entrant the following deal. Both firms agree to maximise industry profits (joint profits). The potential entrant…

The demand a monopoly faces is p = 400 - Q+A 0.5 where Q is its quantity, p is its price, and A is the level of advertising. Its marginal cost of production is $40, and its cost of a unit of advertising is $1. What is the firm's profit equation? The monopoly's profit equation (л) as a function of Q and A is π= (400-Q+A05) Q-40Q-A. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) The monopoly's profit-maximizing price is p = $270, quantity is Q = 260, and advertising is A = 16900. (Enter numeric responses using real numbers rounded to two decimal places.)

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An upstream monopoly sells the good x to a downstream monopoly. The downstream monopoly uses this good as an input to produce its output y. The production function of the downstream monopoly is y = x. The downstream monopoly sells its output to final consumers whose aggregate demand curve is y = 12 − p. The upstream monopoly's cost function is c (x)=2x.   1. Find the quantity x the upstream monopoly sells to the downstream monopoly and the quantity y the downstream monopoly sells to the 1 final consumer. Find also the price k the upstream monopoly charges the downstream monopoly and the price p the downstream monopoly charges the final consumers. Compute the profits of each monopoly.