6. Consider a monopolist facing a linear inverse demand curve p(q) = a bg, where q denotes units of output and b > O represents the slope of the inverse demand curve. This rm faces cost function C (q) = F + cg, where F denotes its xed costs (can contain sunk costs), c represents the monopolist s (constant) marginal cost of production and assume a > c 0. a. Find the monopolisť's profit maximizing output and label it gm. Verify if it is positive. b. What is the market price pm and the profit level m? Is the profit level always positive? If not what is the condition for the profit level to be positive? Explain c. Find the absolute value of the price elasticity of demand n Is the elasticity greater than one? Find the markup on price or Lerner index, defined as evaluated at gm as defined in the textbook.

6. Consider a monopolist facing a linear inverse demand curve p(q) = a bg, where q denotes units of output and b > O represents the slope of the inverse demand curve. This rm faces cost function C (q) = F + cg, where F denotes its xed costs (can contain sunk costs), c represents the monopolist s (constant) marginal cost of production and assume a > c 0. a. Find the monopolisť's profit maximizing output and label it gm. Verify if it is positive. b. What is the market price pm and the profit level m? Is the profit level always positive? If not what is the condition for the profit level to be positive? Explain c. Find the absolute value of the price elasticity of demand n Is the elasticity greater than one? Find the markup on price or Lerner index, defined as evaluated at gm as defined in the textbook.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Pls solve sub questions 1, 2 and 3 only
2. Given the demand curve of the monopolist Q = 60 - 2P and the cost function of the monopolist TC = 50-4Q+ 0.5 Q^{2}, Then find: A. The inverse demand function, average revenue, the marginal revenue functions, marginal cost function? B. Find the level of output and price that maximizes the monopolist profit? C. The level of profit at equilibrium. D. Show graphically profit maximization level of output?
Q1. Consider a monopolist which produces two different products, each having the following demand functions: - P₁, 91 = 14- 1 92 = 24- P2. where 9₁ and 92 represent the output levels of product 1 and product 2 and p₁ and p2 represent their prices. The monopolist's joint cost function is given as C (91, 92) = 91 +59192 +92². Write out the monopolist's profit function.
Suppose the market demand function (expressed in dollars) for a normal product is P= 90-q, and the marginal cost (in dollars) of producing it is MC = 1q, where P is the price of the product and q is the quantity demanded and/or supplied 1. Compute the consumer surplus and the producer surplus assuming this same product was supplied by a monopolist. Note that the monopolist’s marginal revenue curve has twice the slope of the demand curve. 2. Compare and contrast economic surpluses under monopoly market vs competitive market. 3.
Question is in attached image. Thank you! Only answer D,E,F
Consider a monopolist facing a market demand given by: P = 200 - 4Q. Where P is the price and Q is the quantity. The monopolist produces the good according to the cost function c(Q) = Q2 + 5. Determine the profit maximizing quantity and price the monopolist will offer in the market. Calculate the profits for the monopolist. Calculate the deadweight loss due to a monopoly. Illustrate this in a well labelled diagram. I will thumbs up solution if it is original answer and not from ChatGPT, if ChatGPT is used I will thumbs-down and report to Chegg as ChatGPT returns the incorrect answer here and I'm stuck. Thank you! :)
Answer it correctly please...
Assume that a monopolist faces a demand curve for its product given by: p=130−3q Further assume that the firm's cost function is: TC=490+10q What is the profit for the firm at the optimal quantity and price?
QUESTION 3 A monopolist has a cost function of c(x) = x so that its marginal cost is constant at $1 per unit. It faces the following demand curve: D(p) = {100/p 100/p if p > 20 if p ≤ 20 A. What is the profit-maximizing choice of output/price for the monopolist? Graphically represent the monopoly market. B. If the government sets a price ceiling on the monopolist in order to force it to act as a competitor, what price should the government set? C. What output would the monopolist produce if forced to behave as a competitor? D. Based on the information in parts A - C, find the consumer-, producer-, and social surpluses before and after the government intervention.
a) Find and highlight the consumer surplus in the monopoly in the diagram.b) Draw a possible marginal cost curve for the monopolist into the diagram that is consistentwith all the other curves that are already given. c) Based on the marginal cost curve that you constructed in part (b), find and highlight themonopolist’s total costs at the monopoly price in the diagram. d) Briefly (200 words max) explain the shape of the marginal revenue curve as compared tothe demand curve in the diagram.
Now suppose that the monopolist chooses q to maximise its profit. The number of units that the monopolist would sell is __? The monopolist’s revenue at this profit maximising quantity would be__? The absolute value of the price elasticity of demand at this profit maximising quantity would be__?
Macmillan Learning The demand curve for a monopolist is P = 75-0.5Q, and the monopolist's marginal cost curve is defined using the equation MC = 2Q. Assume also that ATC at the profit-maximizing level of production is equal to $12.50. The deadweight loss associated with the profit maximizing level of output is: (Answer with two decimal places)