3) Comcast has a cable monopoly. The following graph shows the demand, MR, andMC curve of Comcast. Use the graph to answer questions 3 to 8.Price (P) and Costs (indollars per subscription)$25$22$21$20$19Ο ΟΙΟ$25$20$195$226.5MRIf Comcast wants to maximize its profit, what price per subscription should itcharge per month?MCATCDQ (Number of subscriptionsin millions per month)

Here, the given graph shows the demand curve, marginal revenue curve, and cost curves of a…

3) Comcast has a cable monopoly. The following graph shows the demand, MR, and MC curve of Comcast. Use the graph to answer questions 3 to 8. Price (P) and Costs (in dollars per subscription) $25 $22 $21 $20 $19 O 0 O $25 $20 $19 5 $22 6.5 MR If Comcast wants to maximize its profit, what price per subscription should it charge per month? MC 7 ATC Q (Number of subscriptions in millions per month)

3) Comcast has a cable monopoly. The following graph shows the demand, MR, and MC curve of Comcast. Use the graph to answer questions 3 to 8. Price (P) and Costs (in dollars per subscription) $25 $22 $21 $20 $19 O 0 O $25 $20 $19 5 $22 6.5 MR If Comcast wants to maximize its profit, what price per subscription should it charge per month? MC 7 ATC Q (Number of subscriptions in millions per month)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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F3.
2. 0 Quantity 1 2 Polly's Piñatas has a local monopoly in the sale of piñatas. The table below shows the demand for piñatas at various prices. The total cost of production of the various levels of output is also shown. Calculate marginal revenue and marginal cost for the firm. What level of output maximizes profit? What price should the firm charge? 3 4 5 Quantity O 1 2 3 4 5 Price $15 13 11 9 7 5 Price $15 13 11 9 7 5 Total Revenue Quantity Marginal Revenue O 1 2 3 4 5 Total Cost $10 13 17 22 28 35 Total Marginal Cost Cost $10 13 17 22 28 35
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4: A Profit-Maximizing Monopoly Firm Price, marginal revenue, marginal cost, average total cost $35 29 ATC MC 15 8. 5. MR 160 220 250 Quantity of output (per week) (See Figure 4) The profit-maximizing monopoly firm's profit per unit is: O $10 O $20 $5 O $14
7. Regulating a natural monopoly Consider the local telephone company, a natural monopoly. The following graph shows the monthly demand curve for phone services, the company's marginal revenue (MR), marginal cost (MC), and average cost (AC) curves. (opes and se 14 QUANTITY (Thods of subscriptions) M Pricing Mechanism Profit Maximization Marginal-Cost Pricing Average-Cost Pricing Suppose that the government has decided not to regulate this industry, and the firm is free to maximize profits without constraints. D Complete the first row of the following table. You may use the green scratch rectangle (triangle symbols) as well as the black scratch point (plus symbol) on the graph to determine the information necessary to fill in the table. You will not be graded on where you place the rectangle and point on the graph. Scratch ProLoca Hint: After placing the point on the graph, you can see the coordinates by clicking and holding the point. After placing the rectangle on the graph you can…
Table 6.1: A Monopoly Price Quantity Marginal (P) (Q) Cost (MC) $14.00 $4.00 $13.00 $5.00 $12.00 8. $6.00 $11.00 10 $7.00 $10.00 12 $8.00 $9.00 14 $9.00 Refer to Table 6.1. The monopoly can earn a maximum profits of about dollars. O 62.00 O56.00 O 58.00 O64.00 4.
A monopoly is charging $10 for its product and at this price, the price elasticity of demand is 0.25. What is its marginal revenue? Select one: O A. -$30 O B. $30 O C. -$25 O D. $25
answer all parts
The diagram bow depts the demand curve (D), the marginal revenue curve (MRO), the marginal cost curve (MC), the average variable cost con (C) and the (ATC) for a monopoly producing a good named ALPHA2 Based upon the information shown on the graphs, determine the maximum profits of the moneonly knowing that the seat value of Xie 35 247 15 Price 10 54 25 204 40 60 sst 50+ 45 30 x+ MC ATC AVC MR 50 60 70 80 90 100 110 120 130 140 150 160 170
PRICE (Cents per Kilowatt-hour) 5 MR 2 QUANTITY (Thousands of kilowatt-hours) ATC MC 10 O True Which of the following statements are true about this natural monopoly? Check all that apply. O False D The electricity company must own a scarce resource. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. Monopoly Outcome In order for a monopoly to exist in this case, the government must have intervened and created it. The electricity company is experiencing economies of scale. ? True or False: Without government regulation, natural monopolies can earn positive profit in the long run.
19 Which of the following describes how a natural monopoly is graphically illustrated? A When producing small quantities, the demand is higher than long-run average cost. BO The long-run average cost curve is U-shaped. CO When producing large quantities, the long-run average cost is greater than demand. The demand curve intersects the long-run average cost curve at a point where the long-run average cost curve is downward sloping. D
Table 15-9 Consider the following demand and cost information for a monopoly. Quantity Total Cost $6 $20 $34 $48 $62 $76 10 1 2 3 14 QUESTION 30 15 Refer to Table 15-9. What is the marginal revenue of the 3rd unit? O a. $20 b. $28 O c. $4 O d. $12 Price $32 $28 $24 $20 $16 $12 QUESTION 31 The fundamental source of monopoly power is O a. rising average total costs. O b. low fixed costs. O c. barriers to entry. O d. many buyers and sellers.