Figure 15-8 PRICE 4 F H Select one: O a. A and J O b. H and L OC. F and K O d. J D and I B MR K QUANTITY G ATC MC Refer to Figure 15-8. What is the socially efficient price and quantity for this natural monopolist? D
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- Figure 15-8 B G ATC MC MR D J K QUANTITY Refer to Figure 15-8. What is the socially efficient price and quantity for this natural monopolist? F and K D and J A and J H and L PRICEE3 A monopolist faces market demand Q = 500 - 10 P, and has a marginal cost curve equal to MC = Q/10 - 10. I have computed the marginal revenue curve fro you which is given by MR = 50 - Q/5. If the firm is a single price monopolist, find the profit maximizing price and quantity and the resulting profit to the monopoly.What is the socially optimal price and quantity? What is the firm's profit at this price and quantity?Show (1) and (2) on a graph.Calculate consumer surplus (CS) and producer surplus (PS) and total surplus for parts (1) and (2). Show CS, PS, and DWL on the graph. Calculate the DWL due to monopoly.If the firm engages in first degree price discrimination, find the profit maximizing quantity and the resulting profit to the monopoly.Between (1) and (5), which pricing scheme is preferred by the monopolist and which by the consumers? why?uppose a local cable company provides cable service to a rural community. The gure to the right illustrates the cable company's marginal cost of providing cable ervice along with the community's demand for cable TV. 120- 110- ssume the local cable company is a monopoly. 100- 90- hen the company maximizes profits, consumer surplus equals $ (enter a umeric response using a real number rounded to one decimal place), and roducer surplus equals $ 80- 70- 60 M ompared to the perfectly competitive market outcome, the cable company 50 reates dead weight loss equal to $ 40- 30- 20- MR 10- 10 20 30 40 50 60 70 80 90 Quantity of cable subscriptions Price and cost (dollars per cable subscription)
- The dogram at the age shows the demand carve, god revenue curve, and cost curvat for a monopolist that owns the only golf courses on Eage hland The monopolist's products 18-hole golf gemees 8. What is the prot manung pece and output number of rounds of got per week) for the monopolist on Eagle land? The prott mauming outpat (number of rounds of golf per week) for the monopolist on Eagle and 80 rounds (Round your response to the nearest whole number) (Round your The prott maxing price for the monopoled on Eagle Blandis response to the post dotar D Price (dollars per round of golf) 250- 225- 200- 175- 150- 125- 100- 75- 50- 25- 0 20 MC ATC D EMR 40 60 80 100 120 140 160 180 200 Quantity (rounds of golf per week)Economics only answer from "regulated price, p" to the end. thank you very much in advance. II A monopolist facos an inverse demand curve given byP 300-30 R han constant marginal cont of 30. What is the proft-maximizing price and quantity What is the mnonopolist's profits? (Aanume the monopolist han zero fxnd conts.) (You may wish to to display your results in a graph) Price = Quantity= Profit = What is the Consumors' Surplun (cs? CS- What in the Deadweight Loss? DWL Assume this is a regulated monopoly and that the regulator winhes to maximize CS without driving the monopolist out of buniness. What price coiling would the regulator choose? Regulated prioe, p'-, At p', recaloulate Consumers Surplus Recalculate profit: Profit' Recalculate DWL'- Who wins as a result of the new regulated price? (Circle one) Consumers Monopolist Both win Neither wins Who loses as a result of the new regulated price?O Macmillan Learning Specialized electronic batteries, such as those for laptops, are hard to dispose of safely, yielding excess pollution when one gets thrown away. Suppose that producing these batteries creates a social cost of approximately $150 per battery. Please shift the appropriate curve or curves to reflect this social cost. The new price is about $ The new quantity is Ithousand. Price (S) 750 700 650 600 550 500 450 400 350 300 250 200 150 100 50 Supply Demand 0 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 Quantity of Laptops (thousands)
- Figure 10-1 Social Cost Supply 3.00 2.80 2.07 1.50 Demand 24 30 38 50 QUANTITY (Units oftobacco) Refer to Figure 10-1. This graph represents the tobacco industry. The industry creates O a. positive externalities. O b.no equilibrium isthe market. OC. negative externalities. O'd.no externalities. PRICE (Dollars per unit)Why are urban areas willing to subsidize urban transit systems? Does the argument for subsidies make sense to you?A friend of yours is considering two cell phone service providers. Provider A charges 120 per month for the service regardless of the number of phone calls made. Provider B does not have a fixed service fee but instead charges 1 per minute for calls. Your friend's monthly demand for minutes of calling is given by the equation QD = 150 50P, where P is the price of a minute. a. With each provider, what is the cost to your friend of an extra minute on the phone? b. In light of your answer to (a), how many minutes with each provider would your friend talk on the phone? c. How much would she end up paying each provider every month? d. How much consumer surplus would she obtain with each provider? (Hint: Graph the demand curve and recall the formula for the area of a triangle.) e. Which provider would you recommend that your friend choose? Why?
- From the graph you drew to answer Exercise 11.6, would you say this transit system is a natural monopoly? Justify. Use the following information to answer the next three questions. In the years before wireless phones, when telephone technology requited having a wile matting to every home, it seemed plausible that telephone service had diminishing average costs and might require regulation like a natural monopoly. For most of the twentieth century, the national U.S. phone company was AT&T, and the company functioned as a regulated monopoly. Think about the deregulation of the U.S. telecommunications industry that has occurred over the last few decades. (This is not a research assignment, but a thought assignment based on what you have learned in this chapter.)Classify the following as a government-enforced barrier to entry, a banker to entry that is not government enforced, or a situation that does not involve a barrier to entry. A City passes a law on how many licenses it will issue for taxicabs A city passes a law that all taxicab drivers must pass a driving safety test and have insurance A well-known trademark Owning a spring that offers very pure water An industry where economies of scale are very large compared to the size of demand in the marketImagine that you ale managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10 less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?