53) A monopolist faces a straight-line demand curve and is currently producing an output level of2000 units receiving $10 000 in total revenue. At an output of 1000 units the marginal revenuefor this firm would beA) 0.B) $2.50.C) $5.00.D) $10.00.E) Impossible to tell with the given information.

The objective of the question is to calculate the marginal revenue for a monopolist firm at an…

Answered: 53) A monopolist faces a straight-line…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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2. Consider a monopolist who has a cost function of c(Q) = 5Q. This monopolist faces two consumers, the first having demand q₁(P₁) = 80 - 2P₁ and the second having demand q₂ (P₂) = 50 - P₂. a) Calculate the profit-maximizing price and then the optimal quantity sold to each consumer under uniform pricing, i.e. the monopolist charges the same price for both consumers. What are the monopolist's profits? b) Suppose now that the monopolist can engage in third degree price discrimination. Find the monopolists profit maximizing prices for consumers 1 and 2 (they should be different), and calculate the monopolist's profits. How do they compare to the profits in part (a)?
Exercise A.4. A company operating in a market of monopolistic competition has an inverse demand curve for its product: P=315-3q, where q is the number of units produced of the good and P its price. The total cost of production of this company is given by: TC(q)=q²+75q+4000. a) To maximize profits, how many units of the good should you sell? b) What price should I charge? (c) What benefits would it reap? (d) Given the above information, how much would you have to reduce fixed costs for longterm equilibrium to occur? Represent graphically
Consider a monopoly market with demand curve Q(P) = . Suppose that producing a good costs $1 per unit and the firm must produce at least 1 unit by law. (1) What is the elasticity of demand? (2) How much would the monopolistic firm produce?
A monopoly A) cannot price discriminate because such a pricing strategy is illegal in the United States. B) faces extensive competition from firms making close substitutes. C) must determine the price it will charge.
Assume a firm engaging in selling its product and promotional activities in monopolisti ccompetition face short run demand and cost functions as Q = 20-0.5P and TC= 4Q2-8Q+15, respectively. Having this information a) Determine the optimal level of output and price in the short run. b) Calculate the economic profit (loss) the firm will obtain (incur). c) Show the economic profit (loss) of the firm in a graphic representation
Give explanation of the correct option and explanation of the incorrect options. Note: Dear expert hand written is not allowed.
3
Please answer question d, e and f
Refer to the accompanying table, which represents the costs and production for a monopolist. Price Quantity Fixed Cost Variable Cost $20 0 $10 $0 $18 1 $10 $5 $16 2 $10 $8 $14 3 $10 $18 $12 4 $10 $30 $10 5 $10 $44 1) At Q=2, the marginal cost of this firm is $ ____ 2)The profit made by this profit-maximizing firm is $ __
Suppose that a monopolist calculates that at its present output level, marginal cost is $4.00 and marginal revenue is $4.00. The firm could increase profits by Multiple Choice increasing price and decreasing output. increasing price and maintaining its current output. decreasing price and leaving output unchanged. decreasing output and leaving price unchanged.
Suppose the inverse demand function for a monopolist's product is given by P = 150-20 and the total cost function is given by TC = 100 + 300 1. Determine the profit-maximizing price and quantity 2. Determine the maximum profits II. Suppose the inverse demand function for a monopolistically competitive firm's product is given by P = 100 - 20 and the cost function is given by TC = 52 +4Q 1. Determine the profit-maximizing price and quantity 2. Determine the maximum profits. 3. Can we say that this firm is operating in the long-run or short-run equilibrium at the equilibrium price and quantity? III. Suppose the inverse demand for a monopolist's product is given by P = 110-10 The monopolist can produce output in two plants. The marginal cost of producing in plant 1 is MC₁ = 3Q₁, and the marginal cost of producing in plant 2 is MC₂ = 2Q₂. 1. How much output should be produced in each plant to maximize profits? 2. What price should be charged for the product?
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly

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