Gargantuan Enterprises has a monopoly in the production of antimacassars. Its factory is located in the town of Pantagruel. There is no other industry in Pantagruel, and the labor supply equation there is W = 10+0.1L, where W is the daily wage and L is the number of person-days of work performed. Antimacassars are produced with a production function, Q = 10L, where L is daily labor supply and Q is daily output. The demand curve for antimacassars is P = 66 − Q/900, where P is the price and Q is the number of sales per day. The firm's profit-maximizing output is closest to: 15,400 antimacassars. Please explain step by step how we found 15,400.

Consider a monopoly market. The market demand function faced by monopoly companies is q=200-p. The production cost function of a monopoly company is C(q)=2q^+20q. Monopoly companies seek profit maximization. Find PM+MR+AC+MC when the market equilibrium price is PM, MR is the marginal income earned by the monopoly, AC is the average cost spent by the monopoly in the market equilibrium trading volume, and MC is the marginal cost spent by the monopoly. C(q)=2q^2+20q

Let us consider an economic sector characterized by the following data. The (inverse) demand function is p = 20 -2q with q the quantities produced by the firms in the sector and p the price. The total cost of production for any firm in the sector is: CT(q) = q* - 4g + 5 a) Firm 1 seeks to deter the entry of another firm, firm 2, into its market through a sustainable monopoly strategy. Calculate the equilibrium price, quantity and profit of firm 1 given this strategy Answer: Price set will be equal to marginal cost. P = MC MG = 29- 4 Putting this into demand function we get: 2q-4 = 20 - 29 q* = 6 (Quantity produced to deter competition) Putting this into demand function: p* = 8 (Price charged to deter competition) Firm 1 has failed to deter entry into its market. So, we now have a situation of non-cooperative oligopoly, with firm 2 having the same total cost as firm 1. The market quantity is such that q = q1 + q2 I) It is assumed that both firms 1 and 2 compete on quantity by making…

Based on market research, a film production company in Ectenian obtains the following information about the demand and production costs of its new DVD:Demand: P = 1,000 – 10QTotal Revenue: TR = 1,000Q – 10Q2Marginal Revenue: MR = 1,000 – 20QMarginal Cost: MC = 100 + 10Qwhere Q indicates the number of copies sold and P is the price in Ectenian dollars.d. Suppose, in addition to the costs above, the director of the film has to be paid. The company is considering four options:i. A flat fee of 2,000 Ectenian dollarsii. 50 percent of the profitsiii. 150 Ectenian dollars per unit soldiv. 50 percent of the revenueFor each option, calculate the profit-maximizing price and quantity. Which, if any, of these compensation schemes would alter the deadweight loss from monopoly? Explain

Your mom is the monopoly supplier of jokes in (humorless) Ho Hum. She faces a demand curve and a marginal cost curve given by following equations Demand: Q = 100 – 0.19P jokes per day Marginal Cost: MC= 80 dollars per joke Assume that jokes are perfectly divisible.

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?

In the astrology market there are n astrologers offering the telephone service "I can read your stars", whose demand can be represented by the function Q = 1000 – 2p, where Q is the number of calls and p the price of each call (we assume all calls last the same amount of time and they have a fixed price). Marginal costs per calls of each fortune teller are identical and constant, c = 1. Consumers perceive all astrologers as having the same reliability as they all look at the stars with their own eyes. Thus, consumers will consult the astrologer offering the lowest price. If all astrologers offer their service at the same price they share the market equally. Calculate the price, and the total number of astrologers in the market if the competition among astrologers takes place 'a la Bertrand. (a) p = 0.9; Q = 998. (b) p = 1; Q = 990. (c) p = 1.5; Q = 997. (d) All the other solutions are wrong. Astrologer A have hear of a brilliant astronomer named Galileo who is about to be killed for…

You own a road resurfacing business called Dahyun Bricks services located in Seoul. You are the only reservicing business in South Korea. Therefore, you have a local monopoly. Your experience running the company for many years has taught you that market demand for your service can be described by the demand function: p = 20 - Q. The cost function is c =q². Therefore, marginal cost equals 2q. Quantity refersto square metre of road resurfacing. Note the Q denotes aggregate market demand and q denotes your production. Of course, if you are the only supplier than q = Q. a) Compute profit maximising price and output. Compute profits. b) The monopoly profit that you have been earning has attracted attention from another firm that will set up operations in South Koreaand compete for market share. You are concerned with losing market share and profit. So, you offer the potential entrant the following deal. Both firms agree to maximise industry profits (joint profits). The potential entrant…

Based on market research, a film production company in Ectenia obtains the following information about the demand and production costs of its new DVD: Demand: P= 1,200 - 10Q Total Revenue: TR = 1,2000 - 10Q Marginal Revenue: MR 1,200 - 200 Marginal Cost: MC = 300 + 100 where Q indicates the number of copies sold and Pis the price in Ectenian dollars. Complete the following table by finding the price and quantity that maximize the company's profit and the price and quantity that maximize social weifare. Price Quantity Scenario (Dollars) (DVDs) Maximizes the company's profit Maximizes social weifare The deadweight loss from the monopoly is S Suppose, in addition to the foregoing costs, the director of the fim has to be paid. The company is considering four options:

You are the manager of a monopoly. A typical consumer's inverse demand function for your firm's product is P = 250- 4Q, and your cost function is TC = 10Q. A. MC is fixed and is equal to $10 (MC=AC=S). MR=250-8Q. (P=price, Q=quantity of output, TC=total cost, MC=marginal cost, MR=marginal revenue, S=supply) What price the company should choose to get maximum profit if the company will use ordinary pricing strategy? Now suppose the company is thinking about using price discrimination for lower income group of customers. If the company will offer discount of $30 in price to the lower income groups how much additional profit will the company earn? Illustrate graphically. Explain the conditions needed to apply the price discrimination strategy?