A monopolist with demand curve p = 1-q produces with a cost technology C(q) = 0.2q (constant marginal cost). Assume each consumer buys only one unit of the product (as in the class example). Solve its profit-maximization problem when the monopolist can perfectly price discriminate. Fill the blanks below in such a case. The total quantity the monopolist sells at the equilibrium is ,and the profit it obtains is The total consumer surplus at the equilibrium is Consider the monopoly market in Q1. Solve the monopolist's profit- maximization problem when it cannot price discriminate at all. Fill the blanks below. When it cannot price discriminate at all, the equilibrium price is the total quantity the monopolist sells is and the profit it earns is The total consumer surplus is Consider the monopoly market in Q1 andQ2. Assume that although each consumer consumes only one unit of the product, she can buy multiple units • of the product, and resell the units she doesn't need. Solve the monopolist's profit-maximization problem in this environment, when it can perfectly price- discriminate (but it does not have to). The equilibrium price is quantity is and the profit the monopolist earns is The consumer surplus is

A monopolist with demand curve p = 1-q produces with a cost technology C(q) = 0.2q (constant marginal cost). Assume each consumer buys only one unit of the product (as in the class example). Solve its profit-maximization problem when the monopolist can perfectly price discriminate. Fill the blanks below in such a case. The total quantity the monopolist sells at the equilibrium is ,and the profit it obtains is The total consumer surplus at the equilibrium is Consider the monopoly market in Q1. Solve the monopolist's profit- maximization problem when it cannot price discriminate at all. Fill the blanks below. When it cannot price discriminate at all, the equilibrium price is the total quantity the monopolist sells is and the profit it earns is The total consumer surplus is Consider the monopoly market in Q1 andQ2. Assume that although each consumer consumes only one unit of the product, she can buy multiple units • of the product, and resell the units she doesn't need. Solve the monopolist's profit-maximization problem in this environment, when it can perfectly price- discriminate (but it does not have to). The equilibrium price is quantity is and the profit the monopolist earns is The consumer surplus is

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter14: Monopoly

Section: Chapter Questions

Problem 14.1P

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$30 MC ATC $20 $10 MR Demand 10 20 30 40 Quantity (in Thousands per Month) What is the maximum profit per month that the monopolist will be able to earn according to the graph? zero approximately $20,000 approximately $50,000 Oapproximately $100,000 Price
Dollers Consider the graph below: ATC Demand MR ELM Quantity To maximize profits, this monopolist will produce: a) M units, where is demand curve crosses his marginal cost curve, so that P = MC. b) Lunits, where his unit cost--called average total cost--is lowest. units, where he can charge the high price of $C. d) E units, where he can charge the price of $B.
10. Suppose that a monopolist faces a linear demand curve having a vertical intercept of (Q.a) and a horizontal intercept of (b,0). Denote the midpoint on the segment ab by the letter m (i.e., the line segment am is equal in length to the line segment bm). Denote the coordinates at point m by (Q*, P*). Now suppose that you overheard a student in ECON 2450 reason in the following manner: A profit-maximizing monopoly firm that sells all units that it produces at a uniform price. The firm would never produce more than Q* (or alternatively, will never charge a price below P*) since doing so reduce its total revenue as well as increasing its total cost. Even if the cost of production were negligibly small or even zero, the monopolist's profits would fall if it produced more than Q*." Is this argument correct? If so explain why. If not, explain why not.
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Question is in attached image. Thank you! Only answer D,E,F
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A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist's variable cost function is given in below table. Quantity Variable Costs 1 3. 4. 40 90 150 220 300 Price Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist's profit maximising price under the assumption that he wants to produce anything at all. d) How large can the monopolist's fixed costs be such that he still wants to start producing at 1. D Focus 9°C Sun
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Assume a monopolist with downward-sloping demand and marginal revenue (MR) curves. The monopolist operates with standard marginal cost (MC) and average total cost (ATC) curves. How does a monopolist determine the profit-maximizing output level and the corresponding profit-maximizing price? A. The output level occurs where MR-MC and price is determined from the demand curve at this output level OB. The output level occurs where Demand = MC and price is determined from the marginal revenue curve at this output level. OC. Both the output level and price are found where MR = MC. OD. Both the output level and price are found where Demand = MC.
Asked Dec 16, 2019 a monopolist finds the demand curve to be linear. with data points (q,p) on that line of being (100,125) and (20,165). How maqny items can he sell if the price is p=90? What price should she charge to maximize revenue?
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