20th AssignmentConsider a monopolist with a total cost of TC=24+2Qand marginal cost of $2 (MC=2). The monopolist facesa demand curve of P=16-Q.1. Graph the monopolist.2. Find price and quantity that the monopolistcharges.3. Find the profit and consumer surplus.4. Find the deadweight loss to welfare.

Given:TC = 24 + 2QMC = 2demand: P = 16 - Q Solve for the monopolistic outcome:Total revenue (TR) =…

Answered: 20th Assignment Consider a monopolist…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter9: Monopoly

Section: Chapter Questions

Problem 33P: Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the...

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Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?
How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?
Imagine that you ale managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10 less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?
Monopoly Market MC - Marginal Cost MR - Marginal Revenue D - Demand ATC - Average Total Cost Refer to the figure above. If this monopolist is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total revenue will be: $100 $160 $180 $120
Monopoly Market MC - Marginal Cost MR - Marginal Revenue D - Demand ATC - Average Total Cost Refer to the figure above. If this monopolist is producing the profit-maximizing quantity and selling it at the profit-maximizing price, the firm's total cost will be: $120 $160 $5 $100
Price Quant ity Total Cost 2.000 1.600 1,800 2. 1,800 1,600 2000 For the Monopolist find the TR when the 3rd output is produced. Selected Answer: 2.000 Question 5 Total Cost 1.600 1.800 2.000 Price Quantity 2.000 1,800 1,600 What would be the profit for the monopolist if he choose to produce 2 units of the good? Selected Answer: 1,600 Question 9 If TR= 2+3Q^2, then MR is:
Draw the demand, marginal revenue, average total cost, and marginal cost curves for a monopolist.(a) Show the profit-maximizing level of output, the profit-maximizing price, and the amount of profit(b) Â Now assume marginal cost pricing is imposed. On the graph, shade the area repre- senting the profit or loss for the firm after marginal cost pricing is imposed.(c) Â Show the level of output that maximizes total surplus. Show the deadweight loss from the monopoly. Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Figure 4 MC MR 20 40 60 80 100 120 Quantity (tickets per hour) 21. In figure 4, a single price monopolist would charge what? 22. In figure 4, a price discriminating monopolist would charge what? Price and costs (dollars per ticket)
Explanation it correctly and details
Exercise A.7. Why will a monopolist's output increase if the government forces it to lower its price? If the government wants to set a price ceiling that maximizes the monopolist's output, what price should it set?
Graph shows the cost and revenue Information for Shitotsu the monopolist. What are the levels of price, output, total (sales) revenue, and total profits if the monopolist were to produce at the positions (a) through (d) indicated in table below? Costs and revenues 40 36 32 28 24 20 16 12 8 4 0 5 10 15 20 25 30 35 Quantity per period a. Total revenue maximization b. Profit-maximization c. Socially optimum price d. Fair-return price MR D=AR MC AC Price ($) 16 G 15 141 Output 20 20 22.5 Total Revenue ($) 320 300 315 Total Profits ($) 120 180
The diagram shows the equilibrium of a profit-maximising monopolist. Cost/revenue (£) Which area represents the supernormal profits made by the monopolist? OABQ MC ABDH AC ABFG B JCFG Al АВСЈ G AR MR Quantity (Q) O o o O O

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