11. A monopolist is faced with the following cost and revenue curves:(a) What is the maximum-profit output?80MC(b) What is the maximum-profit price?70(c)What is the total revenue at this priceand output?6050AÇ(d) What is the total cost at this price andoutput?4030(e) What is the level of profit at this priceand output?20AR() If the monopolist were ordered toproduce 300 units, what would be themarket price?10100200300403500600(2) How much profit would now be made?-10MR(h) If the monopolist were faced with thesame demand, but average costs wereconstant at £60 per unit, what outputwould maximise profit?-20QuantityWhat would be the price now?.How much profit would now be made?.(k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of£40. How much will now be sold?O What is the marginal revenue at this output?(m) What does the answer to (1) indicate about total revenue at a price of £40?(n) What is the price elasticity of demand at a price of £40? (You do not need to do a calculationto work this out: think about the relationship between MR and TR.)

11. A monopolist is faced with the following cost and revenue curves: (a) What is the maximum-profit output? 80 MC (b) What is the maximum -profit price? 70 (e) What is the total revemue at this price and output? 60 50 (d) What is the total cost at this price and output? AÇ 40 30 (e) What is the level of profit at this priece and output? 20 AR (Đ If the monopolist were ordered to produce 300 units, what would be the market price? 10 100 200 300 40 500 (2) How much profit would now be made? -10 MR (h) If the monopolist were faced with the same demand, but average costs were -20 Quantity

11. A monopolist is faced with the following cost and revenue curves: (a) What is the maximum-profit output? 80 MC (b) What is the maximum -profit price? 70 (e) What is the total revemue at this price and output? 60 50 (d) What is the total cost at this price and output? AÇ 40 30 (e) What is the level of profit at this priece and output? 20 AR (Đ If the monopolist were ordered to produce 300 units, what would be the market price? 10 100 200 300 40 500 (2) How much profit would now be made? -10 MR (h) If the monopolist were faced with the same demand, but average costs were -20 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Please help with the following question.
1 . Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. PLEASE HELP ME
dont provide handwriring solution ...
33) Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is Q=20,000 - 400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. What is the difference between price and marginal revenue when KGC sells 5,000 cubic years of concrete per year? A) $12.50 B) $25.00 C) $37.50 D) $50.00
Solution?
3. A monopolist can produce at constant average and marginal costs of AC = MC = 5. The firm faces a market demand curve given by Q = 55-P. (a) Calculate the profit-maximizing price-quantity combination for the monopolist. Also, calculate the monopolist's profits. Graph the relevant functions to illustrate these. (b) What output level would be produced by this industry under perfect competition (where price = marginal cost)? Indicate this on the graph. (c) Calculate the consumer surplus obtained by consumers in case (b). Show that this exceeds the sum of the monopolist's profits and the consumer surplus received in case (a). What is the value of the deadweight loss from monopolization? Indicate these on the graph.
3. How does quantity and price for a monopolist compare to quantity and price for a perfectly competitive firm?
The figure shows the demand curve faced by a monopolist. What is the price effect of a price increase from $3 to $5? OA. $800 OB. $400 OC. $1,000 OD. $200 C Price (5) 10 9 8 17 6 3 2 1 0 100 200 300 400 500 600 700 800 900 Quantity (units)
Answer the question by referring to the table below. The table shows the demand curve facing a monopolistwho produces at constant marginal cost of 6. In short-run equilibrium, the monopolist will produceQuantity Price10 1020 930 840 750 660 5a) 20 unitsb) 30 unitsc) 40 unitsd) 50 units
Please no written by hand solutions 1. Assume the cost function for a monopolist is given by TC(q) = 30Q; the inverse demand function for the firms' output is p = 120 - Q, where Q is the total output. a. Find the profit-maximizing combination of price and quantity b. Estimate consumer surplus, producer surplus and the deadweight loss associated with this monopolist C. If this industry became perfectly competitive, explain and estimate the consumer surplus, producer surplus and deadweight loss of the industry d. Graph your answers for a, b, and c 2. Now assume that the monopolist above splits into two. Each of two firms has the cost function TC(q) = 30q. a. What are the firms' outputs in a Nash equilibrium of Cournot's model? b. Estimate the economic profits for each firm c. If firm 1 is the leader and firm 2 the follower, find the equilibrium outputs for the Stackelberg solution.
Cost & Figure 15 Revenue $10 per unit MC $9 $8 АТС $7 $6 $5 $4 $3 $2 $1 MR 2 3 4 7 8 10 Quantity (in thousands) Refer to the above Figure 15 which shows cost curves, a marginal revenue (MR) curve and a demand curve faced by a monopolist. If this monopolist is profit maximizing and does not price discriminate, it will produce ( Select ] v units of output and charge a price of [ Select ] per unit. Given its cost curves, we can tell that this monopolist is currently earning [ Select ] economic profit. According to the classical welfare economics, the socially efficient quantity to be produced in this market would be [ Select ] units of output and a socially efficient price would be [Select ] per unit.
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