2-) Hypothetical monopoly costs and revenue Quantity Price Total cost $500 $400 2 450 650 3 400 950 350 1,300 300 1,700 Table 1 In Table 1, using the profit-maximization rule, calculate MC, MR and write the profit- maximization quantity and the price:

2-) Hypothetical monopoly costs and revenue Quantity Price Total cost $500 $400 2 450 650 3 400 950 350 1,300 300 1,700 Table 1 In Table 1, using the profit-maximization rule, calculate MC, MR and write the profit- maximization quantity and the price:

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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1. Calculate the profit-maximizing quantity and price for the non-student market. (attached Figure A: Non-Students) 2. Calculate the profit-maximizing quantity and price for the student market. (attached Figure B: Students) 3. Calculate the profit if the firm charges both the non-students and students the same price of $20. (attached Figure A: Non-Students and Figure B: Students) 4. Calculate the profit if the monopoly firm perfectly price discriminates. (attached Figure A: Non-Students and Figure B: Students)
3. Using the cost curves for the monopolist (right), answer the questions 3a - 3d below: a. Indicate where the monopolist maximizes profits, output is equal to b. The monopoly price that maximizes profits is c. What is the maximum profit the firm can earn from its product? d. When the monopolist is maximizing total profit, the average total cost of producing that output level is? Price (dollars) 10 6 4 0 MR 6 Quantity T 11 ||| 8 9 10 MC ATC D
6. Guy Rope and his backing group, the Tent Pegs, have just finished recording their latest music CD. Their record company's marketing department determines that the demand for the CD is as follows: Price (€) Number of CDs €24 10 000 22 20 000 20 30 000 18 40 000 16 50 000 14 60 000 The company can produce the CD with no fixed cost and a variable cost of €0.15 per CD. a. Find total revenue for quantity equal to 10 000, 20 000 and so on. What is the marginal revenue for each 10 000 increase in the quantity sold? b. What quantity of CDs would maximize profit? What would the price be? What would the profit be? c. If you were Guy Rope's agent, what recording fee would you advise Guy to demand from the record company? Why?
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Draw the graph. If the monopoly is a doing perfect price discrimination, then: 1. the monopoly produces a quantity Q = ______ where ________________ (which curves intersect?)2. the monopoly charges a price of ________ (trick question!!!!)3. the consumer surplus is CS = ______. 4. the producer surplus is PS = _________(identify the area on the graph and calculate it).5. this monopoly ________ (is / is not) efficient because ______________________.
Please answer correct plz Don't answer by pen paper plz
Mm.8. Subject:- economic
Consider the daily demand for pizza at a local Italian restaurant, provided in the table below. The number of pizzas demanded at various prices in the table is also illustrated in the graph to the right. First, calculate the marginal revenue for selling pizza in the table. (Enter numeric responses using integers.) Quantity Price Total Revenue Marginal Revenue 0 $18 17 2 16 3 4 14 56 13 1724552 65432 0 32 56 65 Use the line drawing tool to graph the marginal revenue curve in the figure. Properly label this line. Carefully follow the instructions above, and only draw the required objects. Price (dollars per pizza) 20- 18- 16- 14 12- D 10- 8- 6- 4 2- 0+ 0 1 2 3 4 Quantity of Pizzas 5 6
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4. A monopolist is faced with the following cost and revenue curves: $ 80 70 60 50 40 30 20 10 0 -10 0 -20 100 200 300 400 FMC 500 AC AR 600 MR Quantity (a) What is the maximum-profit output?. (b) What is the maximum-profit price? (c) What is the total revenue at this price and output? (d) What is the total cost at this price and output? (e) What is the level of profit at this price and output? (f) If the monopolist were ordered to produce 300 units, what would be the market price? (g) How much profit would now be made? (h) If the monopolist were faced with the same demand, but average costs were constant $60 per unit, what output would maximise profit? (i) What would be the price now? (j) 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?.