Once a monopolist chooses their profit-maximizing level of output, theyuse theto find the highest price it can chargefor that quantity.For a profit-maximizing monopoly that charges the same price to allconsumers, the price (<, , >) marginal revenue andmarginal revenue (<, , >) marginal cost. (Circle the correct answer for each.)When a monopolist switches from charging a single price to perfect pricediscrimination, it reduces4. A publisher faces the following demand schedule for the next novel from one of itspopular authors: (Make sure to show all your work.)PriceQuantityDemandedTotal RevenueMarginalRevenueTotal CostsMarginalCosts$10090100,00080200,00070300,00060400,00050500,00040600,00030700,00020800,00010900,0001,000,000The author is paid $2 million to write the book, and the marginal cost of publishing thebook is constant $10 per book.Compute Total Revenue, Marginal Revenue, Total Costs, andMarginal Costs in the table above.bWhat quantity would a profit-maximizing publisher choose?Chat price would they charge?..How much profit would the publisher make?Graph the Demand curve, Marginal Revenue curve, and the MarginalCost curve. Illustrate the profit-maximizing quantity the publisher wouldproduce and the price they would charge. (Make sure to label the axes.).0 novels

2 3.- Once a monopolist chooses their profit-maximizing level of output, they use the to find the highest price it can charge for that quantity. For a profit-maximizing monopoly that charges the same price to all consumers, the price (<, , >) marginal revenue and marginal revenue (<, , >) marginal cost. (Circle the correct answer for each.) When a monopolist switches from charging a single price to perfect price discrimination, it reduces

2 3.- Once a monopolist chooses their profit-maximizing level of output, they use the to find the highest price it can charge for that quantity. For a profit-maximizing monopoly that charges the same price to all consumers, the price (<, , >) marginal revenue and marginal revenue (<, , >) marginal cost. (Circle the correct answer for each.) When a monopolist switches from charging a single price to perfect price discrimination, it reduces

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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. 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. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. Suppose that BYOB charges $2.50 per can. Your friend Clancy says that since BYOB is a monopoly with market power, it should charge a higher price of $3.00 per can because this will increase BYOB’s profit. Complete the…
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The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity
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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
Question 5 A monopolist sells in two markets. The demand curve for her product is given by p₁ = 119 – 2x₁ in the first market and p₂ = 123 - 5x₂ in the second market, where x; is the quantity sold in Market i and Pi is the price charged in Market i. She has a constant marginal cost of production, MC = 3; and no fixed costs. She can charge different prices in the two markets. What is the profit-maximizing combination of quantities for this monopolist?
In using the graph for a monopolist, with demand, marginal revenue, marginal cost, and average total cost curves, explain how you find the profit maximizing level of output. (Note that this question asks about OUTPUT.
1. Fully explain why the marginal revenue curve of a single-price monopolist lies below that firm’s demand curve
3. When is it optimal for a monopolist to produce the same output as in a perfectly competitive market?
1 Suppose that a monopolist has a patent for widgets and the market demand curve Q(P) is:Q(P) = 60 – 2P,where P is the price in dollars and Q is quantity. a. Solve for the inverse demand P(Q) curve by solving the demand curve for P in terms of Q. b. Using your answer from (a), express the monopolist’s total revenue in terms of Q as TR(Q) = QP(Q). c. Calculate the monopolist’s marginal revenue MR(Q) by differentiating the total revenue you found in theprevious step: MR(Q) = dTR(Q) / dQ. PLEASE SHOW ALL WORK
*You only need to answer question f*