Consider the following diagram for a natural monopoly.$50404030201810ATCMCD5 8 10 121620 Q0A) What does line A represent?B) What quantity would a single-price monopolist choose?C) How much deadweight loss would a single-price monopolist create?D) If the government regulates the price such that total surplus is maximizedwhat price would the government set and what would be the quantitypurchased by consumers? What would the government have to do inorder for the monopolist to continue production at this price?

C) How much deadweight loss would a single-price monopolist create?The deadweight loss created by a…

Answered: Consider the following diagram for a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity
You operate a monopoly with demand, marginal revenue and marginal cost depicted in the graph below. What price and quantity (approximately) should you charge if you want to maximize profit? 10 9 7 MC 6 D 1 MR 1 4 9. 10 Quantity Q* = 5.8 and P* = 4.2 Q 5.8 and P* 2.9 %3D Q = 3.5 and P* 3 Q 3.5 and P* = 6.5 Price 4.
What is the firm's profit?
Give typing answer with explanation and conclusion A monopolist has a demand curve given by P = 88 − Q and a total cost curve given by TC = 34 + Q2. The associated marginal cost curve is MC = 2Q. Suppose the monopolist also has access to a foreign market in which he can sell whatever quantity he chooses at a constant price of 60. How much will he sell in the foreign market? What will his new quantity and price be in the original market?
explain why a monopoly would want to price discriminate explain the (potential) effects of price discrimination on market efficiency.
What is the usual shape of a marginal revenue curve for a monopolist? Why? When a monopolist identifies its profit-maximizing quantity of output, how does it decide what price to charge? Is a monopolist allocatively efficient? Why or why not? ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry were weakened? For many years, the Justice Department has tried to break up large firms like IBM, Microsoft, and most recently Google, on the grounds that their large market share made them essentially monopolies. In a global market, where U.S. firms compete with firms from other countries, would this policy make the same sense as it might in a purely domestic context? If public utilities are a natural monopoly, what would be the danger in deregulating them? Why does regulatory capture reduce the persuasiveness of the case for regulating industries for the benefit of consumers? In the middle of the twentieth century, major U.S. cities had multiple…
Refer to the table below. What is the total cost if the monopoly operates at the profit - maximizing output? Price($) Quantity TR ($) TC ($) 5 2 10 8 4 4 16 10 3 6 18 12 2 8 16 18 1 10 10 25
1. A monopolist's marginal cost function is given by: MC = 4q+ 20 where q is the quantity of good the monopolist produces. Fixed costs are 20, and the demand equation for the good produced is p+4q = 40, where p and q are price and quantity, respectively. - Find expressions for total revenue and for profit, as functions of q. Determine the value of q which maximises the profit. 2. Suppose the numbers x, y and z satisfy the following equations, where a is some number: x+y+z= 5-a 2x+y = 7-a x-y-2z = 0. Use a matrix method to determine the values of x, y and z, in terms of a. For what values of a will x, y and z all be positive? 3. Suppose that a is a positive number and that the function f is given by: f(x, y) = y¹ - 8a²y² +1
Referring to the given graph of a monopoly firm, which statement states a correct outcome in case of single price for good is charged by a monopolist: D MR -MC-ATC D Quantity Area A represents the consumer surplus, Area C represents the producer surplus and deadweight loss is represented by area B+D+E. Area B represents the consumer surplus, Area C+D represents the producer surplus and deadweight loss is represented by area D+E. Area A+B represents the consumer surplus; Area C+D represents the producer surplus and deadweight loss is represented by area E. Area A+B represents the consumer surplus; Area C represents the producer surplus and deadweight loss is represented by area E+F.
Suppose a cable company provides cable service to a small town. The total revenue, marginal revenue, total cost, and marginal cost of providing various quantities of cable subscriptions (units in thousands per month) are presented in the table below. Quantity 0 1 2 3 4 5 6 Price 202 200 198 196 194 192 190 Total Revenue $0 200 396 588 776 960 1140 Assume the local cable company is a monopoly. To maximize profits, the monopoly should produce At that level of output, the cable company will earn economic profits of $ (thousand per month). Marginal Revenue 200 196 192 188 184 180 Total Cost 0 180 270 330 420 660 960 Marginal Cost 180 90 60 90 240 300 (thousand) units. (Enter a numeric response using an integer.)
Question 1: The following graph contains curves that are faced by a monopolist called SoftMicro. 16 MC 14 AC Im 11 10 9 MR 30 50 80 100 a) What is the profit-maximizing quantity and price for SoftMicro if it is a single-price monopoly? b) What is the monopolist's profit and consumer surplus in part (a)? Give me the letters of the shape of the surpluses. c) What is the price and quantity if the industry is perfectly competitive.
A monopoly sellsits good in the United States, where the elasticity of demand is -2.5, and in Japan, where the elasticity of demand is -5.4. Its marginal cost is $50. At what price does the monopoly sell its good in each country if resales are impossible? The price in the United States is $ (Round your answer to the nearest peniny) The price in Japan is $ (Round your answer to the nearest penny)

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