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- Consider a monopoly that faces the demand curve P = 20 − Q, and has the marginal cost curve MC = 2. a) Use the demand curve to find the equation of the marginal revenue curve. b) Find the profit-maximizing price and quantity for this monopoly if the monopoly uses uniform pricing. What is the producer surplus? c) Now, suppose the monopoly wants to increase profits using block pricing. The total cost the monopoly incurs is T C = 2Q. Find the optimal quantities, Q1 and Q2, and their corresponding optimal prices, P1 and P2 that maximize profits using a two-block pricing scheme. What is the new producer surplus? 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.If a monopoly's inverse demand curve is p(Q) = 18 – 2Q and its cost function is C(Q) = 10 + 3Q + 0.5Q, what is Q* maximizes the monopoly's profit (or minimizes its loss)? At Q*, what is the price and the profit? Should the monopoly operate or shut down?A monopoly produces widgets at a marginal cost of $10 per unit and zero fixed costs. It faces an inverse demand function given by P = 50 - Q. What is the profit under monopoly?
- A monopoly firm faces an inverse demand function like p=100-Q. The firm's cost curve is C(Q)=50+5Q. a) What is the profit-maximizing solution? Calculate the optimal price and quantity. b) Intuitively explain how your answer changes if C(Q)=100+5Q? c) Graphically show or explain why after an increase in the demand curve, a monopoly's price may stay constant, but its output may increase. d) Imagine subsidy is granted to each firm operating in the monopolistic competitive market which leads to decrease in their FC of production. What is the effect of this government policy in the prices and the number of firms in the market? Why? Explain. %23 A BI - T: F4 F10 Scrll Lock F5 F6 F7 F8 F9 Num Lock PrtSc SysRq Insert De 7 7 8 8 9 9 R Y U 4 O P 6. F G H J K 1 L Er 3 C V B N M ? Page Up + IISuppose a monopoly firm has the following Cost and Demand functions: TC=Q2 P=80-Q MC=2Q MR=80-2Q Carefully explain what the firm is doing and why. Find the firm’s Profit maximizing Q Find the firm’s Profit maximizing P. Find the firm’s Profit. Suppose because of an advertising campaign, which costs $500, the monopoly’s demand curve is: P=100-Q so its MR= 100-2Q. MC=2Q Looking closely at the TC function and the demand curve, explain the effects of the advertising campaign on the equations compared with the equations above in part 1. Find the firm’s Profit maximizing Q Find the firm’s Profit maximizing P. Find the firm’s Profit. Was the advertising campaign successful? Compare 2 w/ 1. Why?The inverse demand function a monopoly faces is p=100-Q The firm's cost curve is TC(Q)=10+5Q What is the profit-maximizing solution? How does your answer change if TC(Q)=100+5Q
- The demand a monopoly faces is p = 400 - Q+A 0.5 where Q is its quantity, p is its price, and A is the level of advertising. Its marginal cost of production is $40, and its cost of a unit of advertising is $1. What is the firm's profit equation? The monopoly's profit equation (л) as a function of Q and A is π= (400-Q+A05) Q-40Q-A. (Properly format your expression using the tools in the palette. Hover over tools to see keyboard shortcuts. E.g., a superscript can be created with the ^ character.) The monopoly's profit-maximizing price is p = $270, quantity is Q = 260, and advertising is A = 16900. (Enter numeric responses using real numbers rounded to two decimal places.)If, in a monopoly market, the demand for a product is p = 195 − 0.10x and the revenue function is R = px, where x is the number of units sold, what price will maximize revenue? (Round your answer to the nearest cent.)A monopoly supplies its markets from two plants, with cost functions: C1 = q? C2 = 2q2 and faces a linear demand curve: p = 70 – 2(q1 + q2) Find the firm's profit maximizing output for each plant.
- Consider a market with a common demand function given by Q = 100 - 2P, where Q represents quantity and P represents price. The total cost function for firms in this market is TC=1000+ 50². a) For a monopoly, calculate the profit-maximizing price, quantity, consumer surplus, producer surplus, and deadweight loss. b) Compare the monopoly equilibrium to the equilibrium in perfect competition. Calculate the price, quantity, consumer surplus, producer surplus, and deadweight loss under perfect competition. c) Use a single graph to illustrate both the monopoly and perfect competition equilibriums. 4If a monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $ 28800. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS=$ W = $ DWL = $ AIf a monopoly faces an inverse demand curve of p=450-Q, has a constant marginal and average cost of $30, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination () is $88200. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is Profit from single-price profit-maximization is = $44100. (Enter your response as a whole number.) Corresponding consumer surplus is (enter your response as whole numbers): welfare is and deadweight loss is CS = $0 W = $ 88200 DWL = $0. CS = $ 22050 W = $ 66150 DWL = $ 22050
