. Think about a monopolist, the market demand function is: QD = 100/P?, the monopolist's cost function is: C(Q) = 2Q, dQp/QD a. Based on the definition of price elasticity of demand: ep,p = what is the dP/P price elasticity of the market demand curve in this case? b. What is the monopolist's optimal price based on the inverse elasticity rule? c. If the government decide to impose a $1 per unit tax on the output, please use the inverse elasticity rule to decide if the monopolist's optimal price will increase more than $1 after the tax

. Think about a monopolist, the market demand function is: QD = 100/P?, the monopolist's cost function is: C(Q) = 2Q, dQp/QD a. Based on the definition of price elasticity of demand: ep,p = what is the dP/P price elasticity of the market demand curve in this case? b. What is the monopolist's optimal price based on the inverse elasticity rule? c. If the government decide to impose a $1 per unit tax on the output, please use the inverse elasticity rule to decide if the monopolist's optimal price will increase more than $1 after the tax

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88 − Q and a total cost curve given by TC = 34 + Q2. The associated marginal cost curve is MC = 2Q. Suppose the monopolist also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?
Pls solve sub questions 1, 2 and 3 only
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Assume a monopolist with downward-sloping demand and marginal revenue (MR) curves. The monopolist operates with standard marginal cost (MC) and average total cost (ATC) curves. How does a monopolist determine the profit-maximizing output level and the corresponding profit-maximizing price? A. The output level occurs where MR-MC and price is determined from the demand curve at this output level OB. The output level occurs where Demand = MC and price is determined from the marginal revenue curve at this output level. OC. Both the output level and price are found where MR = MC. OD. Both the output level and price are found where Demand = MC.
Question is in attached image. Thank you! Only answer D,E,F
1. Consider a monopolist where the market demand curve for the produce is given by P = 520 2Q. This monopolist has marginal costs that can be expressed as MC = 100 + 2Q and total costs that can be expressed as TC = 100Q + Q2 + 50.a. Given the above information, what is this monopolists profit maximizing price and output if it charges a single price?b. Given the above information, calculate this single price monopolists profit.c. At the profit maximizing quantity, what is this monopolists average total cost of production (ATC)?
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