Consider the case where there is a consumer in the market with a demand of P= 60-2q. A monopolist has variable costs of VC = 2q² where Pis price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF=200, p = 20 OF=150, p=20 OF = 100. p=40 OF = 400, p = 40 auto.proctoru.com is sharing your screen. Stop sharing Hide

Consider the case where there is a consumer in the market with a demand of P= 60-2q. A monopolist has variable costs of VC = 2q² where Pis price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF=200, p = 20 OF=150, p=20 OF = 100. p=40 OF = 400, p = 40 auto.proctoru.com is sharing your screen. Stop sharing Hide

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter16: Government Regulation

Section: Chapter Questions

Problem 10E

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Exercise A.6 A monopolist facing the demand curve Q = 42 – 0.6P operates with constant average and marginal costs equal to 20. a) Calculate the quantity, price and profit obtained by the monopolist. Represent graphically. (b) What quantity, what price and what benefit will you get if you can apply first-degree price discrimination? Calculate the consumer surplus and represent graphically. c) The monopolist warns that he can separate consumers into two distinct groups with demands Q1 = 12 - 0.1P1 and Q2 = 30 - 0.5P2. Calculate the quantities, the prices you will set in each market, and the profit you will make. Represent graphically.
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3. Consider a monopolist who faces the following demand: Demand: P= 100 – 10Q MC= 50+20 a) Find the price quantity combination that maximizes profit for the monopolist. b) Is the firm making positive, negative or zero profits? (100,100) Kareem chooses (60, 105) (500, 400) Saleem chooses Kareem chooses (50,420) 4. Calculate the SPNE/SPNES for the game stated above.
Consider the case where there is a consumer in the market with a demand of P = 60 - 2q. A monopolist has variable costs of VC = 2q² where Pis price and q the quantity sold. The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)? OF=200, p = 20 OF=150, p = 20 OF=100, p = 40 OF=400, p = 40 Hide
The figure at right shows the demand line, marginal revenue line, and cost curves for a single-price monopolist. Now suppose the monopolist is able to charge a different price on each different unit sold. 200- The profit-maximizing quantity for the monopolist is 400. (Round your response to the nearest whole number.) 180 160- MC The price charged for the last unit sold by this monopolist is s450 (Round your 140- response to the nearest dollar) 2 120, ATC The monopolist's profit is $ 50. (Round your response to the nearest dollar.) 100- 80 60- 40- 20- MR D- 76 150 225 300 375 450 525 600 675 750 Quantity Price (S)
Consider a monopolist with a demand equation P = 60 - 2Q, where P is the price in dollars and Q is the quantity. The monopolist is able to produce the output with a constant marginal cost of $20 which is equals to the average total cost. Assume that there is no fixed cost. A. If the monopolist practice single pricing, determine the price, quantity, profit, consumer surplus and producer surplus in this market with the aid of a suitable diagram. Appraise the efficiency in this market. B. If the monopolist were to practice perfect price discrimination, determine the quantity, profit, consumer surplus and producer surplus of the monopolist. Appraise the efficiency in this market. C. Consumers and the society are always worse off in a monopolised market compared to a perfectly competitive market. Do you agree? Examine the two (2) market structures and explain with the help of a suitable market diagram.
A monopolist faces inverse market demand of P = 140 – and has Total Cost given by TC(Q) = 2Q? + 10Q + 200. %3D Find this monopolist's profit maximizing output level. Find this monopolist's profit maximizing price. How much profit is this monopolist earning?
Suppose a monopolists cost and revenue information is given by p = 20 – 0.002q Demand TR(q) = 20q – 0.002q? MR = 20 – 0.004q TR MR TC = 160 + 0.025q² MC = 0.05q TC MC Any other relation you need you can derive yourself. Show all of your work. a. What is this single price monopolist's profit maximizing output choice? b. What price should this monopolist charge for their output? c. What is the average cost per unit at the profit maximizing level of output? d. Is the monopolist earning a loss (profit)? Either way show the loss (profit)?
A monopolist has the demand and marginal cost as shown in the table below. There is no fixed cost in the production. Quantity Marginal Cost 2 Price 10 1 9. 2 3 8 3 4 7 4 5 5 (i) If the monopolist practices single pricing, determine the price, quantity, and profit of the monopolist. Explain how the quantity is determined. (ii) If the monopolist practices perfect price discrimination, determine the price, quantity and profit in the market.
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