20- SM What happens if a perfectly competitive industry becomes a monopoly? Suppose the demand curve in the figure is market demand and the corresponding market supply curve represents the marginal cost of production. Compared to perfect competition, a profit-maximizing monopoly would decrease output by 2 units. (Enter your response as an integer) In addition, a monopoly would lower price by $12 Price and cost perunt 18- 10- 14- 126 12- 10- 8- MR 10 12 14 10 Quantity 18

20- SM What happens if a perfectly competitive industry becomes a monopoly? Suppose the demand curve in the figure is market demand and the corresponding market supply curve represents the marginal cost of production. Compared to perfect competition, a profit-maximizing monopoly would decrease output by 2 units. (Enter your response as an integer) In addition, a monopoly would lower price by $12 Price and cost perunt 18- 10- 14- 126 12- 10- 8- MR 10 12 14 10 Quantity 18

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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100 pis possib TTIT The table below shows the quantity of output produced by a monopoly that consumers demand at each price and the monopoly's cost structure. Quantity Price Total Revenue Marginal Revenue $400 350 300 Total Cost Marginal Cost $40 1 $400 $400 750 1,050 1,300 1,500 1,650 1,750 1,800 1,800 $40 375 60 20 3 350 108 48 IS 325 250 164 56 300 200 228 64 6. 275 150 300 72 250 100 380 80 225 50 480 100 200 600 120 What are the profit-maximizing price and quantity? The monopoly should produce units of output and charge a price of $ (Enter your responses as integer values.) What is the monopoly's profit? The monopoly's profit is $ (Enter your response as an integer value.) Enter your answer in each of the answer boxes. Гext Type here to search
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23 20 15 13 7 1200 1800 MR MC ATC What quantity will the above monopolist produce if it can first degree price discriminate? (Enter a number) How much consumer surplus do consumers get in the above graph if the monopolist first degree price discriminates? number) (Enter a
While firms in perfect competition maximize profit by producing at a quantity where the marginal cost of producing another unit of a good is equal the the marginal revenue from producing another unit, monopoly firms will maximize profit by producing at a quantity where marginal cost of producing another unit is equal to the marginal revenue (the same as perfect competition) the marginal profit the average total cost O the price of the good 10:04 P Bi 63°F Cloudy 5/20/202 e here to search O
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1. Asssume the following equations describe the conditions for an unregulated monopoly: Qd = q = 25,000 -100P or P = 250-0.01q TC = 480,000 + 70q + 0.005q2 where Qd is the quantity demanded for the firm, P is the commodity's price in dollars, TC is total cost in dollars, and q is the quantity of output produced. Based upon the above equations, answer the following questions: a. What is the firm's profit maximizing quantity of output? b. What price will the firm charge for the commodity c. What does the firm's total economic profit equal? d. What is the amount of deadweight loss that exists given the monopoly is unregulated? Assume the government is now going to regulate this monopoly, and the regulators want to guarentee the monopolist produces the socially optimal quantity of output. e. What is the socially optimal quantity of output? f. What price would regulators establish to guarantee the monopolist produces the socially optimal quantity of output? g. What does the firm's…
TPrice 30 MC 23 20 15 ATC D 9 12 Qiucantiry \MR b) Determine the deadweight loss for this market. Why does a deadweight loss arise in a monopoly?
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Review the graph at right. Monopoly 100- What is the optimal monopoly regulated price? $ whole number) (enter your response as a MC 90- 80- 70- P= $60 60- 50- B C 40- MC = $30 30- S 20- 10- Q = 3OMR 20 30 40 50 60 70 80 90 100 Quantity 10 étv 30 DII esc F1 F2 F3 F5 F6 FR 23 2$ & 2 4 8 Q W T tab S F K caps lock C V shift fn control option command Price CI