3. Answer the following questions about the figure below:eliquPrice$20$18$16$14$12$10$8.$6$4$20MRD1 2 3 4 5 6 7 8 9 10 11 12 13 14QuantityMCa. What is the profit-maximizing level of output?iliw tailogonom off010 +115d0-(899 moitiba T wilmM) loods.Pb. What price with the monopolist charge to maximize profits?

A monopolist will produce where MR is equal to MC to maximize profit. MR is the marginal revenue…

3. Answer the following questions about the figure below: Price $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 0 Quantity a. What is the profit-maximizing level of output? WA 162 MR 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 MC b. What price with the monopolist charge to maximize profits?

3. Answer the following questions about the figure below: Price $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 0 Quantity a. What is the profit-maximizing level of output? WA 162 MR 1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 MC b. What price with the monopolist charge to maximize profits?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The graph below depicts the demand curve facing a monopolist. The monopoly has constant marginal costs of $5. On the graph: A). Use the straight line tool to draw the marginal revenue curve. B) use the straight line tool to draw the marginal cost curve up to 60 units of output C) use the point tool to plot the profit maximization point on the demand curve.
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?.
9. Draw a linear demand curve, linear MC and MR for a monopolist. (a) Show graphically the optimal price and quantity produced. (b) How will your answer in (a) change if the demand becomes more inelastic? Will the gap between MC and p increase or decrease? (c) Show the CS, PS, and, DW L.
A monopolist faces the following demand curve: Price $10 $9 $8 $7 $6 $5 $4 $3 Quantity 5 Select one: O a. 31 units O b. 7 units O c. 16 units O d. 23 units 10 16 23 31 45 52 60 The monopolist has total fixed costs of $40 and a constant marginal cost of $5. What is the profit-maximizing level of output?
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How do you graph this Consumer surplus and Deadweight Loss
QUESTION 12 The table below shows a monopolist's demand curve and the cost information for the production of its good. What will their profits equal? Quantity Price per UnitTotal Cost 10 $100 20 $80 $60 $40 $20 O 30 40 50 a. $600 O b. $1,200 O c. $1,600 O d. $1,000 $100 $400 $800 $1,400 $2,400
1. How much total revenue does the monopoly firmmake? 2. How much total cost does the monopoly firm incur? 3. How much total profit does the firm make?
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By approximately how much did the price of the heart drug for babies increase when a monopoly was established?
3. Suppose that a monopoly has the following demand curve and total costs: 오 P TR TC ATC MC MR Total Profit 50 40 1 45 50 2 40 72 - 3 35 95 - 4 30 125 - 25 165 6 20 225 a. Fill in the blanks in the preceding table. b. What output will maximize the monopolist's profit? c. What price will the monopolist choose?