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

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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
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 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*
The diagram at right shows the demand curve, marginal revenue curve, and cost curves for a single-price monopolist that owns the only golf courses on Eagle Island. The monopolist's product is 18-hole golf games. a. Now suppose the monopolist is able to charge a different price on each different unit sold. What would be the total number of rounds of golf sold per week? rounds. (Round your response to the The total number of rounds sold per week is 600 nearest whole number) What would be the price on the last round sold? The price on the last round sold is $200 (Round your response to the nearest dollar) b. What is the value of the consumer surplus if the monopolist cannot price discriminate at all? The value of the consumer surplus is $ 40000 (Round your response to the nearest dollar) c. What is the value of the consumer surplus when the monopolist is practicing this "perfect price discrimination? The value of the consumer surplus is $ (Round your response to the nearest dollar) Price…
2. A monopolist sells tours of a stately Montana home to two groups of consumers, Montanans (M) and others (O). The monopolist knows the total demand for group O, which is Qo=100-2P, and the total demand for group M, which is QM =80-2P. The monopolist is able to identify consumers by inspecting their IDs and can thus apply third-degree price discrimination. The monopolist's cost function is C(G) = 4Q + 20. a. What price will the monopolist charge for group O? What price will the monopolist charge for group M? What is the monopolist's total profit? For the next questions assume that it has become illegal to charge different prices and thus the monopolist must charge the same price to everybody. b. Write down equations representing (1) aggregate demand and (2) marginal revenue at all possible prices. Find the profit maximizing price and output. Will both O's and M's purchase tours, or only one or the other? c. Suppose that the monopolist charges $44. What is total consumer surplus at…