Figure 15-3PriceATCand costper unitMC$75685438Demand630800Quantity880850MRFigure 15-3 above shows the demand and cost curves facing a monopolist.2) Refer to Figure 15-3. Suppose the monopolist represented in the diagram above producespositive output.2)a. What is the profit-maximizing/loss-minimizing outputlevel?b. What is the price charged at the profit-maximizing/loss-minimizing output level?c. Suppose the monopolist represented in the diagram above produces positive output.What is the profit/loss per unit?d. What happens to the monopolist represented in the diagram in the long run?

a. A market is a place where the buyers and the sellers interact with each other and the exchange of…

Answered: Figure 15-3 Price ATC and cost per unit…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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And also the graph please, Thank you!
2. A monopolist faces demand p = 10 - Q and has costs TC = 10 + 2q. a. Provide expressions for marginal revenue and marginal cost. b. Maximize the firm's profit to determine the equilibrium price, quantity, and profit. c. The monopolist faces the prospect of entry by competitor with the same cost function. If the firm enters, they will compete by choosing quantities. Does the monopolist need to worry about this entry threat? Explain. d. The government is considering a subsidy of 4 for all firms in this industry. Should the monopolist support or oppose this policy? Explain.
3. When is it optimal for a monopolist to produce the same output as in a perfectly competitive market?
Figure 15-7 Price $20 15 10 ● 100 150 Figure 15-8 200 Marginal Cost Demand Quantity Refer to Figure 15-7. To maximize its profit, which outcome would a monopolist choose? Marginal Revenue a. 100 units of output and a price of $10 per unit * b. 100 units of output and a price of $20 per unit C. 150 units of output and a price of $15 per unit d. 200 units of output and a price of $10 per unit polist ?
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.
1. Refer to the figure below when the firm is a monopolist. Price P MC L K J ATC D T W Quaxtity \MR a) If the monopolist maximizes profit, how many units will it produce? b) What price will the monopolist charge? c) What area measure the monopolist's profit? d) What level of output would be socially efficient? 2. A Monopolist is facing a demand schedule that is shown in the following table. Quantity Total Revenue Average Revenue Marginal Revenue Price $35 $32 1 2 3 $29 14 $26 15 $23 $20 $17 $14 6 7 18 19 $11 10 $8 a) Fill out the rest of the table. b) Assume this monopolist's marginal cost is constant at $11. What quantity of output (Q) will it produce and what price (P) will it charge? ------
1 Suppose that a monopolist has a patent for widgets and the market demand curve Q(P) is:Q(P) = 60 – 2P,where P is the price in dollars and Q is quantity. a. Solve for the inverse demand P(Q) curve by solving the demand curve for P in terms of Q. b. Using your answer from (a), express the monopolist’s total revenue in terms of Q as TR(Q) = QP(Q). c. Calculate the monopolist’s marginal revenue MR(Q) by differentiating the total revenue you found in theprevious step: MR(Q) = dTR(Q) / dQ. PLEASE SHOW ALL WORK
2. A monopolist produces its output in two factories, whose cost curves are given by C1 (q1) = 10q and C2 (q2) demand for the firm's product is given by P = 700 – 5Q where Q is the total quantity sold by the monopolist. (a) On a diagram, illustrate the monopolist's decision about how much to produce at each factory and overall and the price to charge. Briefly explain your diagram. (b) Numerically calculate the monopolist's optimal choices for qı, q2, Q, and P. (c) Suppose that labor costs increase in Factory 1 but not in Factory 2. How should the firm change (i.e. raise, lower, or leave unchanged) each of the values you found in (b)? Your answer should be qualitative, not quantitative. 10q3 where q1 and q2 are the amounts produced at each factory. The diagram might be useful but is not necessary.
ces Problem 08-06 The diagram below shows the demand, marginal revenue, and marginal cost of a monopolist. 120 MC MR 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Quantity a. Determine the profit-maximizing output and price. Profit-maximizing output units Profit-maximizing price: $ b. What price and output would prevail if this firm's product was sold by price-taking firms in a perfectly competitive market? Price: $ Output: units c. Calculate the deadweight loss of this monopoly. Mc Graw Hill 110 100 90 80 70 60 50 40 30 20 10 19 BU C
1. Using a graph, show a situation in which a monopolist is incurring short-run losses. Explain how this is possible. 2. Julee has estimated the demand and marginal revenue for her product. They are P = 100 - 2Q (quantity) and MR = 100 - 4Q, respectively. She also experiences constant marginal cost of $16. a. Does Julee have any market power? How can you tell? b. What is Julee’s profit-maximizing quantity? c. What price should Julee charge at that profit-maximizing quantity? 3. Explain a situation in which, when holding costs constant, a monopolist that was earning economic profits in the past can later incur an economic loss.
The demand curve for a monopolist's product is shown. The point UD is the point along the curve where price elasticity of demand is unitary. With this information, use the straight-line tool to draw the marginal revenue curve, stretching from one axis to the other. To refer to the graphing tutorial for this question type, please click here. 4 0 Price (5) 1000 1500 1400 1300 1200 1100 1000 900 400 7:00 600 500 13 OF 15-QUESTIONS COMPLETED N Qadd See Hint SUBMIT ANSWER
Chapter 9 - Monopoly OPEN Suppose the following are true for a monopolist market: P = 450 - 16Q MR = 450-32Q MC = 55+ 37Q ATC=55+ 18.5Q What is the profit maximizing Price and Quantity? Q* = P = S How much profit did the monopolist earn? Profit = S O E a hp * a

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