9. A monopolistic producer of two goods, 1 and 2, has a joint total cost function = 100, +Q,0, +100, where & and O: denote the quantity of items of goods 1
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- 2. Derive the monopoly equilibrium, i.e., the profit maximizing price and quantity, as well as the firm's profit, for each of the demand functions given below, assuming the firm's total cost of q units of output is given by C(q) = 4q a) b) c) g=e=²p+16 20000 2 9= P q=400 - 8p#2 pleaseLagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE (Dollars per bottle) 4.00 3.50 3.00 2.50 2.00 1.50 1.00 0.50 D MC D 15 20 25 30 3.5 QUANTITY (Thousands of bottles of beer) 45 ATC MR Price (Dollars per bottle) 2.00 2.25 40 Monopoly Outcome…
- Suppose than an oligopolist is charging $20 per unit of output and selling 28 units each day. What is its daily total revenue? $ Also suppose that previously it had lowered its price from $20 to $18, rivals matched the price cut, and the firm's sales increased from 28 to 29 units. It also previously raised its price from $20 to $29, rivals ignored the price hike, and the firm's daily total revenue came in at $550. Which of the following is most logical to conclude? The firm's demand curve is (Click to select) < Prev Ne 28 of 50Please Answer all subparts with explanation. I will really upvote. Don't copy paste. Thanks(a) Consider a monopoly trading firm that dominates a particular market. Describe the factors that contribute to the monopoly's ability to control prices and generate profits and as such discuss its short run and long run profit situation. Use relevant diagrams to support your answer.(b) Suppose more firms are interested in joining the market and over the years, the market structure is characterised by monopolistic competition. Discuss the implication on the firm's short-run and long run profits. Use relevant diagrams to support your answer.
- 2. The market for dark chocolate us characterized by Cournot duopolists - Honeydukes and Wonka industries. The market demand for dark chocolate is:P = 8 - 0.005Qdwhere P is the price per bar in dollars and Qd is dark chocolate's daily quantity demanded in bars (use qh to represent the quantity of dark chocolate sold by Honeydukes and qw to represent the quantity of dark chocolate sold by Wonka Industries). Honeydukes has a constant marginal cost of $2.50 per bar, while Wonka Industries has a constant marginal cost of $3.00 per bar. The firms move simultaneously in choosing their profit-maximizing quantity of output.a. Given the firms move simultaneously, what is the equation for Honeydukes' reaction function with qh expressed as a function of qw?b. Given the firms move simultaneously, what is the equation for Wonka's reaction function with qw expressed as a function of qh?c. What quantity of dark chocolate will each firm produce in equilibrium and what price will be established for a…Give type answerLagatt Green is a monopoly beer producer and distributor operating in the hypothetical economy of Lightington. Assume that Lagatt Green is not able price discriminate, and so it sells its beer to all customers at the same price per bottle. The following graph gives the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) curves that Lagatt Green faces for beer in Lightington. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for Lagatt Green. If Lagatt Green is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if Lagatt Green is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 3.00 ATC 2.50 2.00 * 1.50 MC MR 1.5 2.0 PRICE (Dollars per bottle) 4.00 3.50 1.00 0.50 0 0 0.5 1.0 2.5 3.0 QUANTITY (Thousands of bottles of beer) 3.00 3.5 (Cans) D Complete the following table to…
- Q1. Consider the following graph for a pure monopoly firm selling electricity. (a)What are the profit maximization output and price? How much is the profit? (b)Suppose the demand for electricity increases due to the unusually cold weather. Would the profit maximizing output increase or decrease? What about the price?3. Maximize the profit of a monopolistic firm producing two related goods, i.e, P=f(Q1, Q 2) when the goods are substitute and the demand and total cost functions are P1 = 70-5Q1- 2Q2 P2= 60 –Qı – 3Q2 TC = 3q1² +Q!Q2+ 2Q?? hint profit = TR - TCwhy is a firm in a monopolistic competition said to be competive?in what sense is hat firm monoplistic