30Figure 3.PA22232015.12-10-30MCATCMRQ0q1215⑧In order to maximize profits, the monopolistsshould charge a price ofa$20b)$12c)$9d) $45④Perfect price discrimination occurs when a businesscharges the maximum possible price for each unitconsumed. In Figure 3, how many units wouldthe monopolist produce if he card price-discrimi-nate perfectly?a) 12b) 15c) 9d) 20

Detailed Explanation: The profit maximization condition for a monopolist is achieved when:Marginal…

Answered: 30 Figure 3. PA 22 23 20 15. 12- 10- 30…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose the table below describes the relationship between price and quantity demanded for a monopolist. Quantity 1 2 3 4 5 6 7 8 O If the marginal cost of producing each unit of output is $5, then this monopolist maximizes its profit by charging __________ per unit. O $8 $5 $3 Price $10 $9 $8 $7 $6 $5 $4 $3 $6
The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity
A monopolist faces the demand curve illustrated below. 12 9 -1 -2 12 13 11 15 15 1 1s 19 20 21 22 23 24 Suppose the monopolist faces a marginal cost of $5, and that there are no fixed costs. Thus, the marginal cost is equal to the average total cost in this case. Given this, what is the monopolist's profit maximizing price if it is not able to price discriminate O $5 O $8.33 O $2 O $10 $7.50 N O087654321
1 . Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. PLEASE HELP ME
12) Suppose that a monopolist supplies a product in two distinct markets, LA and NY. The demand functions for the two markets are PLa = 65 – 3QLA and Pvy = 50 – 5QNY. The monopolist has a fixed cost of $10 and a constant marginal cost of $5 per unit. a. If segmenting is feasible, what are the profit-maximizing prices, quantities, and maximized profit? b. If segmenting is NOT feasible, what is the profit-maximizing price, quantity, and maximized profit? c. How much is the difference in total consumer surplus in the two cases? Which case makes consumers better off?
s Assume that a monopolist is able to engage in perfect price discrimination and sell each unit of the product at a price equal to the maximum price the buyer of that unit of the product would be willing to pay. Complete the table below by computing total revenue and marginal revenue for the price discriminating monopolist. Quantity Price Total revenue Marginal revenue Total Cost Marginal cost 0 $34 $ 1 32 30 28 26 24 22 20 18 16 14 234SSN 5 6 7 89 10 $ $20 36 46 50 54 56 64 80 100 128 160 $ (a) What is the marginal revenue that the discriminating monopost obtains from the sale of each additional unit? (b) How many units would be produced and what would be the total revenue for the perfectly discriminating monopolist? What would economic profits be? (c) Compare the economic effects of price discrimination to no price discrimination for the pure monopolist in terms of profits and the level of output.
Q20 With regard to price discrimination, we can generally say that a monopolist practicing perfect price discrimination _____ a single-price monopolist in the same market. a. Produces the same output level and charges the same price as. b. Produces a lower level of output compared to. c. Generates more consumer surplus than. d. Generates a more efficient outcome for society as a whole compared to. e. Has the same effects on consumer welfare as.
If the monopolist shown in the following figure could practice first-degree price discrimination, the consumer surplus would be: Price (dollars) 50 40 30 20 10 0 O $450.00 $900.00 $0.00 $225.00 O $1,200.00 30 50 60 MR 100 MC Quantity
A single-price monopolist is currently producing at an output level where marginal revenue is $14, marginal cost is $16, AVC=$13, and ATC= $15. It is assumed that the monopolist, as usual, chooses its price on the demand curve. To maximize profit or minimize losses in the short run, this monopolist should O A. decrease the price and increase the level of output. O B. increase the price and the level of output. O C. leave the market. O D. decrease the price and the level of output. O E. increase the price and decrease the level of output.
The quantity sold by a monopolist using first degree price discrimination is higher than the quantity sold by a monopolist who cannot price discriminate. O True O False
Cost & Figure 15 Revenue $10 per unit MC $9 $8 АТС $7 $6 $5 $4 $3 $2 $1 MR 2 3 4 7 8 10 Quantity (in thousands) Refer to the above Figure 15 which shows cost curves, a marginal revenue (MR) curve and a demand curve faced by a monopolist. If this monopolist is profit maximizing and does not price discriminate, it will produce ( Select ] v units of output and charge a price of [ Select ] per unit. Given its cost curves, we can tell that this monopolist is currently earning [ Select ] economic profit. According to the classical welfare economics, the socially efficient quantity to be produced in this market would be [ Select ] units of output and a socially efficient price would be [Select ] per unit.
3. Call Your Aunt is a monopoly seller of deli sandwiches. In DC, the demand curve is p = 16 In Maryland, it is p y Marginal cost is 4. = 12 100 100 (i) Find the profit-maximizing prices under third-degree price discrimination. (ii) Find the profit-maximizing uniform price. (iii) Now 14 – By, where B is a positive constant. Without calculating the new profit-maximizing uniform price, explain whether it is higher or lower than in (ii). suppose that Call Your Aunt starts to sell in Virginia. The demand curve is p

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