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 11 8 + 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). 864 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 11 8 + 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). 864 ATC AVC D = AR

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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4. The figure below presents the demand curve, marginal revenue, marginal costs, and average total costs facing a monopolist producer. Plot the profit-maximizing price and quantity on the graph. Under monopoly pricing, are profits positive, negative, or zero? Draw the deadweight loss under monopoly pricing. If government mandates P = ATC, are profits positive, negative, or zero? Compared to monopoly pricing, is deadweight loss smaller, larger, or the same size? If government mandates efficient pricing, are profits positive, negative, or zero? Compared to monopoly pricing, is deadweight loss under efficient pricing smaller, larger, or the same
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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)?
8. Natural monopoly analysis The following graph gives the demand (D) curve for 5G LTE services in the fictional town of Streamship Springs. The graph also shows the marginal 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. PRICE (Dollars per gigabyte of data) 20 18 16 14 12 10 80 6 4 2 0 0 1 MR 2 3 4 5 6 7 QUANTITY (Gigabytes of data) 8 ATC MC 9 10 D Monopoly Outcome Which of the following statements are true about this natural monopoly? Check all that apply.
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Q)Economics A market comprises two consumers groups: high-demand types and low-demand types. The high types have demand QH = 10 – P and low types have demand QL = 8 – P. If a monopolist has marginal cost MC = 1 + Q, what is the profit maximising price the monopolist would charge if they are not able to price discriminate? a. 5 b. 6 c. 4 d. 7
a. what is the optimal quantity of goods for the firm to produce b. what is the optimal price for the quantity of goods for the firm to produce c. what is the total revenue for the firm d. what is the total cost for the firm e. what is profit/loss for the firm
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