1. A monopolist has a production function, Q = AL KB %3D with 0 < a+B<1. The cost of capital is r, the wage rate is w, and the monopolist takes both as given. The demand function for the monopolist is Q: 1+ exp {p} %3D What is the long-run demand for labor?
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A: Since you have posted multiple questions, will be answering only first part.
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A: Referenceshttps://www.investopedia.com/terms/m/monopoly.asphttps://www.investopedia.com/terms/m/marg…
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- A monopolist can produce at constant average total and marginal cost of ATC = MC = $20. (Constant ATC = MC implies that there are no fixed costs.) The firm faces a market demand curve given by QD = 40 - P. The monopolist's marginal revenue curve is given by MR = 40 - 2QD. Graph this situation, then calculate the monopolist's profit-maximizing price-quantity and the monopolist's profits. What output level would be produced by a corresponding perfectly competitive industry? What would be the price level? Calculate the "deadweight losses" from monopolization of the industry. Show the DWL on the graph.In first-degree price discrimination, a monopolist manipulates market price by altering the quantity of product supplied to that market. Select one: True False A natural monopoly arises when the firm's technology has economies of scale small enough for it to supply some of the markets at a lower average total production cost than is possible with more than ane firm in the market. Select one: True False If a firm's production function is defined as, y=f(x;,X2Xa), the firm's profit is; II(x,,x, ,x,) = p(y)-w,x, - w,x, - w,x. Select one: True FalseA monopolist faces the following market demand function: D(P) = 100 – P and has total costs equal to TC(Q) = 100 + 100 Show that the monopolist's cost function is subadditive for all relevant levels of demand (for all Q< 100). (Hint: Let EN Qi = Q be a way to split up the total production of quantity Q in N different firms. You can then use the fact that the minimum of EN Q? is reached at Qi = 8.)
- You are given the following information about a monopsonist: The demand is P= 25-0.25Q, the average expenditure curve is AE = 0.5Q, and the marginal expenditure curve is ME = 1Q. The quantity (Q) is in thousands of units. Given the information above, how much will the monopsonist purchase, and how much will it pay? (Round your responses to two decimal places.) The monopsonist will purchase thousand units at a price of $ per unit.The Key West Parrot Shop has a monopoly on the sale of parrot souvenir caps in Key West. The inverse demand curve for caps isP = 30 - 0.4Qwhere P is the price of a cap and Q is the number of caps sold per hour. Thus, the marginal revenue for the Parrot Shop isMR = 30 - 0.8QThe Parrot Shop is the only employer in town and faces an hourly supply of labor given by w = 0.9E + 5where w is the hourly wage rate and E is the number of workers hired each hour. The marginal cost associated with hiring E w orkers, t herefore, i sMCE = 1.8E + 5Each worker produces two caps per hour. How many workers should the Parrot Shop hire each hour to maximize its profit? What wage will it pay? How much will it charge f or each cap?Consider a monopolist who faces the following demand function P = 100 – 2Q. The firm’s cost function is given by C(Q) = 10 + 2Q What are the profit maximizing output and price? What is the profit at this point?
- A monopolist is determining the optimal output Q* to produce. Demand Function: P=12-2Q Average Cost Function: AC=1/3Q2-5Q+17+25/Q What is the optimal output level (Q*)?Question 27 Consider a monopoly market in which the market demand curve is given by P = 240 – 2Q, the marginal revenue curve is MR = 240 – 4Q, the marginal cost curve is MC = 2Q, and there are zero fixed costs. Suppose the government intervenes and turns the market into a competitive market, and all the firms in the market have the same marginal cost curve as the monopolist, MC = 2Q, and zero fixed costs. How much is the resulting gain in total surplus? 300 800 400 600Suppose that a monopolist’s demand curve is P = 9 – 2*Q. Marginal cost is expressed as follows: MC = 0.5*Q. What is the profit-maximizing price (P) the monopoly should set? What would be the output (Q) at that price? What are the current values for the consumer and producer surpluses (CS and PS)? Is it possible to calculate the profit made by the monopolist? If so, how much is it? If not, what other information would be needed to do that? What would be the 2 key options for a government regulator to increase the consumer surplus (CS) and reduce the producer surplus (PS)? Explain briefly the pros and cons of one of the options!
- Consider a firm that is a monopolist in its output market and a monopsonist in the market for labour, the only input. The elasticity of demand for a firms good is -2 and the elasticity of supply for labor 4. What percentage does the revenue marginal product of labour exceed the wage paid by this firm by?A movie monopolist sells to college students and other adults. The demand function for students is Q = 1,560 - 100P, and the demand function for other adults is Q = 1,800 - 100P. but who has cost function C(Q) = Q +0.005Q² Marginal cost is MC = 1 + 0.010, where Q=Qs+ QA- Instructions: Round your answers to 2 decimal places as needed. a. What prices will the monopolist set when she can discriminate? Pstudent = $ per ticket. Padult = $ Profit = $ b. What if demand for adults increases to = 2,000 - 100P? Q Pstudent = $ Padult = $ Profit = $ per ticket. O increases. O decreases. per ticket. c. When adult demand increases, the adult price: per ticket. does not change. O decreases. O increases. d. When adult demand increases, the student price: does not change.Suppose that the demand for good x is given by : P=100-8q Marginal cost of production is given by : P=10+2q MR is given by 100-16q What will the equilibrium quantity and price be in a competivite market? Calculate consumer, producer and total surplus. If we contrast this market to one in which good x is produced by a monopoly, what will be the quantity produced and the price each unit will be sold as? Calculate consumer, producer and total surplus. What will be the loss in total surplus due to a monopolist?