Consider a monopolist which sells output in two markets, the home market and the foreign market. Themenopolist faces a linear demand curve of P - 20 - Qi in the home market and Py - 40- 20, in the foreignmarket The monopolists total cost is C(q)-1500-q What prices the monopolist charges in the home and theforeign market respectively?O$11, $21Os12. S16.O $6, S18O $18, $28.none of the above

A monopolist is an individual, group, or company that controls the market for a good or service.…

Consider a monepolist which sells output in two markets, the home market and the foreign market. The nenopelist faces a linear demand curve of Pi - 20 - Qi in the home market and P, - 40- 20, in the foreign market The monopolists total cost is C(q)-1500-q? What prices the monopolist charges in the home and the Coreign market respectively? $11, $21 O s12. S16. O $6, S18 O $18, $28. none of the above

Consider a monepolist which sells output in two markets, the home market and the foreign market. The nenopelist faces a linear demand curve of Pi - 20 - Qi in the home market and P, - 40- 20, in the foreign market The monopolists total cost is C(q)-1500-q? What prices the monopolist charges in the home and the Coreign market respectively? $11, $21 O s12. S16. O $6, S18 O $18, $28. none of the above

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

A monopolistic firm sells into two markets. The two inverse demand curves are p, = 12 - 9, and p, = 12 -292. Assume that the firm cannot charge different prices in the two markets. Then its total revenue will be O a. (24 - 3P)P Ов. 48-3Q 2 Oc (12 - P)3, Od (24-3Q)Q
A single-price monopolist is currently producing at an output level where marginal revenue is $14, marginal cost is $16, AVC=$13, and ATC= $15. It is assumed that the monopolist, as usual, chooses its price on the demand curve. To maximize profit or minimize losses in the short run, this monopolist should O A. decrease the price and increase the level of output. O B. increase the price and the level of output. O C. leave the market. O D. decrease the price and the level of output. O E. increase the price and decrease the level of output.
A monopolist w11ishes to maximize total revenue. She produces two outputs, (x1, x2) and faces the following demands for her products, X1 = 20 – 2p1, and X2 = 20 – 4p2 Where p1 and p2 are, respectively, the prices of the two goods. To produce one unit of x1 the monopolist must use one unit of land and one unit of capital. And, to produce one unit of x2 requires two units of land and one unit of capital. The firm has available 10 units of land and 6 units of capital. Specify the firm’s short-run maximization problem. Set up the Kuhn-Tucker conditions for maximization (you do not need to solve). Assume that the solution is x*1 = 5 1/3 (i.e. 16/3) and x*2 = 2/3. Explain which constraints are binding and whether the Lagrange multipliers are positive or zero and what they mean.
Assume inverse demand function for game console in an imaginary country is P=1200-4Q and the total cost function is TC=400+4Q². Government put $120 of specific tax on production. a. If the market is competitive what is the incidence of tax on consumer? b. If the market is monopolist what is the incidence of tax on consumer?
Consider a market with homogeneous consumers. Compare a monopolist who is charging a uniform price with a monopolist who is using two-part tariff. In which case the mo- nopolist’s profit is higher? What about the social welfare (sum of the consumers’ surplus and the monopolist’s profit)?
The monopolist has constant marginal and average cost AC-MC=70 and faces the market demand P120-Q. Suppose the monopolist can perfectly price discriminate by setting a two-part tariff: that is, the monopolist charges the consumer a fixed fee Fand a per unit price p. What are the optimal values of Fand p that the monopolist sets? O F-$2500, p-$70 O F-$3500, p-$70 O F-$2375, p-$95 O F-$1250, p-$70 O F-$2975, p-$85
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 >с 0. a. Find the monopolist's profit maximizing output and label it Verify if it is positive. b. What is the market price pm and the profit level Tm? 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 Is the elasticity greater than one? Find the markup on price or Lerner index, defined as p(q)-C'(q) evaluated at qm as defined in the textbook. L (q) p(q) at gm. What happens with L when n increases? Is it true that "A proft maximizing monopolist decreases its markup as demand becomes more price elastic. Explain. d. Find the…
Exhibit 9-8 Profit maximizing for a monopolist Ps MC ATC P. Price, P3 costs, P2 and revenue P. (dollars) Ai MR Q, Quantity of output (units per time period) As shown in Exhibit 9-8, the monopolist's total cost is which of the following areas? O PIAEP5. O P2BDP4. O P3CDP5. O PĄDEP5. O None of these.
A monopolist has the following information: (use this to answer questions 8-10) Demand: P = 100 - .1Q AC = MC= 10 MR = 100 - .2Q at the profit maximizing level of output, economic profit is: O 20,150 20,250 20,350 20,450
Assume quantities must be integers. A monopolist constrained to charging the same price for each unit faces the following demand and marginal cost schedule. What is producer surplus when the monopolist charges the profit maximizing price? MWTP $23 $22 $21 $20 $19 $18 $17 $16 $15 $14 1 2 3 4 6 7 8 9 10 MC $2 $6 $7 $8 $9 $10 $11 $12 $13 $14 Enter a number only, no $ sign.
A monopolistic firm sells into two markets. The two inverse demand curves are p, = 12 – g, and p, = 12 – 2g3: Assume that the firm cannot charge different prices in the two markets. Then its total revenue will be О a.(24 - 3Q)Q O b.(24- 3P)P Ос. 48- 30 O d. (12 - P)3 2
Long Ron Marginal Cou Long-Run Average Total Cost Love Star College-North Hants Iretructor Dr. rahim Abou Saad Demand Curve 02 Outpat (Q) Marginal Revenue Referring to the figure above for a profit-maximizing monopolist, which of the following output sizes represents the most productively efficient output that the monopoly regulators can enforce against this monopolist? (Hint: production efficiency increases when producing at a lower average cost) O Q1 Q2 Q3 Q4 Q5 Q6