**Exhibit 9-4: A Monopoly**| Price | Quantity Demanded | Total Fixed Cost | Total Variable Cost ||-------|--------------------|------------------|---------------------|| $100 | 0 | $20 | $0 || 90 | 1 | $20 | 20 || 80 | 2 | $20 | 48 || 70 | 3 | $20 | 78 || 60 | 4 | $20 | 110 || 50 | 5 | $20 | 150 |Refer to Exhibit 9-4. At an output level of 3 units, the monopolist earns a total profit of about ______.- ○ $80.00- ○ $92.00- ○ $112.00- ○ $110.00**Explanation of the Table:**This table depicts a monopoly's pricing strategy and cost structure. The columns show:- **Price:** The selling price per unit.- **Quantity Demanded:** The number of units consumers are willing to buy at each price level.- **Total Fixed Cost:** A constant cost of $20, applicable regardless of the output level.- **Total Variable Cost:** Costs that vary with the level of output.To find the total profit at an output level of 3 units, calculate:- **Total Revenue:** Price × Quantity = $70 × 3 = $210- **Total Cost:** Total Fixed Cost + Total Variable Cost = $20 + $78 = $98- **Total Profit:** Total Revenue - Total Cost = $210 - $98 = $112Therefore, the correct answer is $112.00.

Total Revenue is the product of price and output. Total Cost is the sum of total fixed cost and…

Exhibit 9-4: A Monopoly Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 $20 48 70 $20 78 60 4. $20 110 50 5. $20 150 Refer to Exhibit 9-4. At an output level of 3 units, the monopolist earns a total profits of about O $80.00 O $92.00 $112.00 $110.00

Exhibit 9-4: A Monopoly Total Quantity Total Fixed Variable Price Demanded Cost Cost $100 $20 $0 90 1 $20 20 80 $20 48 70 $20 78 60 4. $20 110 50 5. $20 150 Refer to Exhibit 9-4. At an output level of 3 units, the monopolist earns a total profits of about O $80.00 O $92.00 $112.00 $110.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(Figure: Monopolies Versus Competitive Industries) If the monopoly depicted in the graph were to become a perfectly competitive industry, deadweight loss would MC MR Output O decrease from i +j to zero. O decrease from i +j to j. decrease from i+j to i. O stay the same. Price and Cost
PRICE (Dollars per subscription) 100 90 80 70 60 50 40 30 20 10 0 0 2 4 Pricing Mechanism Profit Maximization " 6 10 12 14 QUANTITY (Thousands of subscriptions) Marginal-Cost Pricing Average-Cost Pricing T 8 Complete the first row of the following table. MR O True O False Suppose the government has elected not to impose regulations on the industry, and so the firm faces no regulatory constraints in maximizing profits. 16 Complete the second row of the previous table. ATC MC Complete the third row of the previous table. D 18 20 Short Run Price Quantity (Subscriptions) (Dollars per subscription) Suppose now that the government decides to require the monopolist to set its price equal to marginal cost. Profit Suppose now that the government decides to require the monopolist to set its price equal to average total cost. Long-Run Decision True or False: Over time, the internet service provider has a very strong incentive to lower costs when subject to average-cost pricing regulations.
2. You run a monopoly firm that serves two types of consumer. Individual type-A consumers have a value of 8 for their first unit of your product, a value of 4 for their second unit, and a value of zero for all additional units. Individual type-B consumers have a value of 5 for a single unit of the product and zero for any additional units. There are 3 type-A consumers and 5 type-B consumers. Your marginal cost is zero. a) If your firm can set only a single per-unit price for any units sold, what price should you choose? What is your total profit? b) If your firm can practice first-degree price discrimination, how many units are sold to each consumer and how much does each consumer pay? What is your total profit?
(Figure: Electricity generation). If this monopoly were regulated under Average Cost (AC) pricing, the output produced is Group of answer choices 2,700 GWh 3,000 GWh 0 GWh 2,000 GWh
Solve all questions compulsory..
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8. Fill in the blanks: Suppose that a monopoly faces the following demand schedule. It costs the monopoly $3 to produce every unit of output and it had FC = $4. P $10 $9 $8 $7 $6 $5 $4 Q 1 3 4 5 6. 7 The firm's optimal quantity is and its optimal price is
5- Use the figure below to answer the following questions. Price (dollars per unit) 100 80 60 40 20 O 20 MC MR 40 D 60 80 Quantity (units per week) Figure 3 a) Refer to Figure 3. If this market is perfectly competitive, the output level exceeds the single-price monopoly output level by how much? b) Refer to Figure 3. What is the allocative efficient quantity? c) Refer to Figure 3. If this market is a single-price monopoly, then what statement can be made about economic efficiency? Please explain your answer.
100 pis possib TTIT The table below shows the quantity of output produced by a monopoly that consumers demand at each price and the monopoly's cost structure. Quantity Price Total Revenue Marginal Revenue $400 350 300 Total Cost Marginal Cost $40 1 $400 $400 750 1,050 1,300 1,500 1,650 1,750 1,800 1,800 $40 375 60 20 3 350 108 48 IS 325 250 164 56 300 200 228 64 6. 275 150 300 72 250 100 380 80 225 50 480 100 200 600 120 What are the profit-maximizing price and quantity? The monopoly should produce units of output and charge a price of $ (Enter your responses as integer values.) What is the monopoly's profit? The monopoly's profit is $ (Enter your response as an integer value.) Enter your answer in each of the answer boxes. Гext Type here to search
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5. Individual Problems 9-5 Describe the difference in economic profit between a competitive firm and a monopolist in both the short and long run. Which should take longer to reach the long-run equilibrium? In the short run, both monopolists and competitive firms can competitive firms, but not monopolists earn positive economic profits. In the long run, can earn a positive economic profit. True or False: The adjustment to long-run equilibrium takes the same amount of time for monopolies and competitive industries. True O False