4. A monopolist is faced with the following cost and revenue curves: $ 80 70 60 50 40 30 20 10 0 -10 -20 MC AC X AR 100 200 300 400 500 600 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?

4. A monopolist is faced with the following cost and revenue curves: $ 80 70 60 50 40 30 20 10 0 -10 -20 MC AC X AR 100 200 300 400 500 600 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?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

6. Consider a monopolist with zero cost, C(Q)= 0, facing two consumers. Con- sumer 1's demand is given by P=8-Q while consumer 2's is P=8-Q. Sup- pose the monopolist can engage in second-degree price discrimination. (a) What menu of quantity-price pairs should it offer to its customers? What's the firm's profit? (b) Suppose that consumer 1's demand is instead given by P=4-1Q. What menu of quantity-price pairs should it offer to its customers? What's the firm's profit?
Q30
1. A monopolist faces a demand curve, Q = 100 – 5P, and a cost function TC = 2Q. (a) Solve the monopolistť's profit maximization problem. What is the optimal Q of the monopolist? What output price and profit does this quantity imply? (b) What is the monopolist's markup in equilibrium? Use markup to calculate elasiticity of demand at the equilibrium point. (d) Now suppose there is no price cap, and the monopolist has figured out how to segment the market into three groups with different demand curves given by the following equations: Q1 = 30 – P Q2 = 40 – 2P Q4 = 30 – 2P %3D What prices should the firm charge and what quantities should they supply to each group? Show that the firm is better off price discriminating (compared with the scenario in part (a) without price discrimination).
11. A monopolist is faced with the following cost and revenue curves: (a) What is the maximum-profit output? 80 MC (b) What is the maximum-profit price? 70 (c) What is the total revenue at this price and output? 60 50 AÇ (d) What is the total cost at this price and output? 40 30 (e) What is the level of profit at this price and output? 20 AR () If the monopolist were ordered to produce 300 units, what would be the market price? 10 100 200 300 403 500 600 (2) How much profit would now be made? -10 MR (h) If the monopolist were faced with the same demand, but average costs were constant at £60 per unit, what output would maximise profit? -20 Quantity What would be the price now?. 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? O What is the marginal revenue at this output? (m) What does the answer to (1) indicate about total revenue at a price of £40? (n) What is the price…
Consider the table below: 0 TR MR AR-P 0 0 10 0 1 900 900 1.200 1200 $1200 2 1600 700 2100 500 1050 3 2700 600 900 7 2400 300 300 750 5 3.000 600 3000 0 600 How much will this monopolist produce and how much profit will he carn? a) He will produce 5 units and earn zero profits. b) He will produce 2 units and earn profits of $500. c) He will produce 4 units and earn $600. d) None of the above.
1. Which of the following statements is true of a monopolist? a. It will produce where price equals marginal cost. b. It is not a price taker. c. It is a price taker. d. It will set price below marginal revenue. e. None of these. 2. A monopoly supplier of a good produces a socially inefficient quantity of the good because a. the marginal revenue curve is not equal to the demand curve. b. the marginal benefit to the consumers of supplying a given unit is greater than the marginal revenue to the monopoly. c. the monopoly charges a price that is above marginal cost, preventing trades that would increase total surplus. d. Both B and C. e. All of the above.
.
I need help with principles of microeconomics chapter 10 problem 6 please help
2. Use the following diagram for a monopoly to answer the questions. Price and cost per unit MC $30 21 18 8 ATC D 20 33 35 40 0 Quantity a. What quantity will the monopoly produce, and what price will the monopoly charge? b. Suppose the government decides to regulate this monopoly and imposes a price ceiling of $18 (in other words, the monopoly and charge less than $18 but can't charge more). Now what quantity will the monopoly produce and what price will the monopoly charge? Will every consumer who is willing to pay this price be able to buy the product? Briefly explain. MR
Figure: A Profit-Maximizing Monopoly Firm Price, marginal revenue, marginal cost, average total cost A) $5. OB) $13. C) $14. $35 D) $20. 29 26 రారాళి 8 5 0 (Figure: A Profit-Maximizing Monopoly Firm) Look at the figure A Profit-Maximizing Monopoly Firm. This firm's profit per unit is: MC ATC MR 160 220 250 300 Quantity of output (per week)
Suppose a monopolist's profit-maximizing output is 500 units per week and that the firm sells its output at a price of $50 per unit. The firm has total costs of $7,000O per week. Assume the monopolist is maximizing its profit and earns $35 per unit from the sale of the last unit produced each week. Instructions: Enter your answers as a whole number. a. What are the firm's weekly economic profits? 2$ b. What is the firm's marginal cost? 2$ c. What is the firm's average total cost?
Answer the given question with a proper explanation and step-by-step solution.