pleasee the question below Facebook is the biggest seller of advertising space in the socialmedia market (Instagram is also a major seller, but it is owned byFacebook). Assume that Facebook is a monopolist and isillustrated by the graph below.Use the below graph for #9 - 16.P(5)17161514a, 14.0ATC34, 1.416, 1.817, 1831. 1.4MC1011 12134 15 1617e19 20 21 22 23 24 25 26 27 28 2930 31 32 33 34Q (milions)What is the quantity of ads that Facebook sells?QUESTION 10What price does Facebook charge?QUESTION 11What is the size of the mark-up?QUESTION 12What is the profit earned by Facebook?

We know that monopolist is a price maker and in this case, the price is decided by the monopolist…

Facebook). Assume that Facebook is a monopolist and is illustrated by the graph below. Use the below graph for #9 - 16. P(S) 16 17 16 15 14 1, 14.0 ATC 34, 1.4 16, 18 D 31. 1.4 17, 1.8 MC 1011 1213 14 15 16 17e19 20 21 22 23 24 25 26 27 28 2930 31 32 33 34 Q (milions) 15, 1.9 What is the quantity of ads that Facebook sells? QUESTION 10 What price does Facebook charge? QUESTION 11 What is the size of the mark-up? QUESTION 12 What is the profit earned by Facebook?

Facebook). Assume that Facebook is a monopolist and is illustrated by the graph below. Use the below graph for #9 - 16. P(S) 16 17 16 15 14 1, 14.0 ATC 34, 1.4 16, 18 D 31. 1.4 17, 1.8 MC 1011 1213 14 15 16 17e19 20 21 22 23 24 25 26 27 28 2930 31 32 33 34 Q (milions) 15, 1.9 What is the quantity of ads that Facebook sells? QUESTION 10 What price does Facebook charge? QUESTION 11 What is the size of the mark-up? QUESTION 12 What is the profit earned by Facebook?

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

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 2.3CE

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A monopoly’s inverse demand function is p= 100 - Q + (5A-A2)/Q: where Q is quantity, p is price and A is the level advertising. Its marginal cost of production is constant at 10 and its cost of a unit of advertising is 1. What are the firm’s profit-maximizing price, quantity, and level of advertising? Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.