1- The below graph shows a monopolist that faces a market demand according to his cost functions. Answer all following questions: Figure 1 MC $22 18 16 14 T MR Q 0 12 17 22 a. What is the production level that will maximize profit (or minimize loss) for the monopolist. Explain. b. Calculate the monopolist's total revenue (TR) at the production level that will maximize profit (or minimize loss). C. Calculate the monopolist's total cost (TC) at the production level that will maximize profit (or minimize loss). d. What is the profit (or loss) the monopolist will make, at the production level that will maximize profit (or minimize loss). e. Is the monopolist going to still produce or shutdown? Explain. 11 8 ATC AVC D = AR

1- The below graph shows a monopolist that faces a market demand according to his cost functions. Answer all following questions: Figure 1 MC $22 18 16 14 T MR Q 0 12 17 22 a. What is the production level that will maximize profit (or minimize loss) for the monopolist. Explain. b. Calculate the monopolist's total revenue (TR) at the production level that will maximize profit (or minimize loss). C. Calculate the monopolist's total cost (TC) at the production level that will maximize profit (or minimize loss). d. What is the profit (or loss) the monopolist will make, at the production level that will maximize profit (or minimize loss). e. Is the monopolist going to still produce or shutdown? Explain. 11 8 ATC AVC D = AR

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 29CTQ: Imagine that you ale managing a small firm and thinking about entering the market of a monopolist....

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Refer to the graph shown of a profit-maximizing monopolist: $100 $90 MC $80 $70 $60 $50 Price, cost, revenue D 7000 14000 21000 12000 Question: What is the monopolist's economic profit(loss) at the profit-maximizing level of output? O-$280,000 O $0 $140,000 $840,000 O -$140,000 0 /AC MR
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E PRICE (Dollars per gigabyte of data) The following graph gives the demand (D) curve for 5G LTE services in the fictional town of Streamship Springs. The graph also shows the ma revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local 5G LTE company, a natural monopolist On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. 20 18 ATC 2 MR MC D 0 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Gigabytes of data) Monopoly Outcome Which of the following statements are true about this natural monopoly? Check all that apply. In order for a monopoly to exist in this case, the government must have intervened and created it. The 5G LTE company is experiencing diseconomies of scale. The 5G LTE company is experiencing economies of scale. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. True or False: Without…
allings Review View Help ed Threat Protection and it hasn't detected any threats. If you need to edit this file, click enable editing. 1- The below graph shows a monopolist that faces a market demand according to his cost functions. Answer all following questions: Figure 1 MC $22 18 16 14 MR I 1 Q 0 12 17 22 a. What is the production level that will maximize profit (or minimize loss) for the monopolist. Explain. b. Calculate the monopolist's total revenue (TR) at the production level that will maximize profit (or minimize loss). C. Calculate the monopolist's total cost (TC) at the production level that will maximize profit (or minimize loss). d. What is the profit (or loss) the monopolist will make, at the production level that will maximize profit (or minimize loss). e. Is the monopolist going to still produce or shutdown? Explain. 11 8 ATC AVC D = AR Enable Editing
DAU BAUGO BA ECO2066 (2) Mathem... Overview Plans Resources Follow-up and reports Participants More Question 1 Given a monopolist which has identified two submarkets of buyers for its product with demand schedules: Q, = 400- 4P, and Q2 = 300 - 5P, The total cost curve of the monopolist is C(Q)- 20Q + 100 Q = Q1 + Q2 • Determine the profit maximizing outputs and prices in the two submarkets and the total profits of the monopolist under price discrimination. Calculate the price elasticity of demand in each submarket at the profit maximizing output levels. • Determine the profit maximizing output, price and profit if the monopolist does not practice price discrimination. Your answer: BIU A- A- Q = S : x, x" OG临向? Font Size HE 10:20 23°C Kismen güneşli A O TUR 21.06.2021 41W PriSc Ineert Deleie F1 101 7 ( 8.
CS 12 Economics
E3 Let’s assume a monopolist has the following inverse demand curve:p = 248 −3qand the following cost curve:T C = 8q + q^2(a) Calculate the marginal revenue and marginal cost for this firm.(b) Let’s assume the firm chose to operate in a perfectly competitive market. If that was true,what is the equilibrium price and quantity?(c) Graph the demand curve, marginal revenue, and marginal cost for the perfectly competitivemarket. Show the optimal quantity and price on the graph.(d) Calculate the consumer surplus, producer surplus, and deadweight loss in this market.(e) Now, let’s assume the firm chose to operate as a monopolist. If that was true, what is theequilibrium price and quantity?(f) Graph the demand curve, marginal revenue, and marginal cost for the monopolist market.Show the optimal quantity and price on the graph.(g) Calculate the consumer surplus, producer surplus, and deadweight loss in this market.
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