In the second Monopoly in the Short Run exercise scenario, the Monopolist produced 3 units permonth at a price of S38 per unit and lost S6/month as a result. If this scenario continued into thelong run, the firm (who's still a monopolist) should expect:Entry by new firms.Exit by existing firms.Neither entry nor exit.Unable to determine.А.В.С.D.Again, use the checklist to determine your answer.Entry ConditionsTrue/FalseExit ConditionsTrue/False1. Long Run Time-frame1. Long Run Time-frame|2. Positive Profit| 2. Negative Profit3. No Barriers to entry

The market structures are differentiated based on the number of firms in the market, the type of…

In the second Monopoly in the Short Run exercise scenario, the Monopolist produced 3 units per month at a price of S38 per unit and lost $6/month as a result. If this scenario continued into the long run, the firm (who's still a monopolist) should expect: A. Entry by new firms. Exit by existing firms. В. Neither entry nor exit. Unable to determine. D. Again, use the checklist to determine your answer. Entry Conditions True/False Exit Conditions True/False 1. Long Run Time-frame 1. Long Run Time-frame 2. Positive Profit 2. Negative Profit 3. No Barriers to entry

In the second Monopoly in the Short Run exercise scenario, the Monopolist produced 3 units per month at a price of S38 per unit and lost $6/month as a result. If this scenario continued into the long run, the firm (who's still a monopolist) should expect: A. Entry by new firms. Exit by existing firms. В. Neither entry nor exit. Unable to determine. D. Again, use the checklist to determine your answer. Entry Conditions True/False Exit Conditions True/False 1. Long Run Time-frame 1. Long Run Time-frame 2. Positive Profit 2. Negative Profit 3. No Barriers to entry

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question :- A monopolist faces an inverse demand curve given by P= 800 - 2Q and a cost curve given by C(Q)= 40Q + 3Q2. If this firm practices 1st degree price discrimination, it will earn _______ in surplus. Select one: a. $36,100 b. None of these. c. $28,880 d. $0
MONOPOLISTIC COMPETITION 1. Suppose that the cost of production is given by the following function: CT = 100 + Q2 and that the demand is given by P = 80 - Q. a. Determine the level of maximization.b. Determine the value of CT and ITc. Check that the IMg = CMg CT (Total cost) IMg (marginal income) CMg (marginal cost) Algebraically if the demand curve in the monopoly is a function of quantity, the demand curve is a straight line. P = a - bQWhere a is the ordinate to the origin, b the slope and Q the quantitySo if IT = P x QWe have that (a - bQ) Q = aQ - bQ2IT = aQ - bQ2And therefore the marginal income is the derivative of IT or what is equal to the variation of total income between the variation of the quantity.Therefore the IMg = derive the quantity in the function aQ - bQ2IMg = a - 2bQ Consider these functions when conducting monopoly exercises.
monopolist has demand and cost data given in the table below. The 'P' column gives the demand data -- what is the maximum amount the firm can charge to sell the associated quantity Q? The 'TC' column gives the total cost of producing that level of quantity Q. Q P TC 0 17 10 1 15 15 2 13 19 3 11 23 4 9 27 5 7 32 6 5 38 7 3 46 1. What is the marginal profit of the 1st unit? 2. How many units should this firm produce to maximize profit? No hand written solution and no image
*You only need to answer question f*
V3
1) With monopoly, we only specify long run cost functions because we are not as interested in the shut down decision and we don't have firm entry to compete away profit. Still, to make the math work, our monopolist cost functions often have fixed costs. Let's solve the following question: EagleSOFT has developed a computer program that will send UNT sports teams scores directly to purchaser's phones as text messages. Demand and total cost for the software company is described by the following equations: Demand: P = 70 -0.05Q, Cost: C = 4000 + - 10Q. a) What is the firm's level of output, the price they should charge, and their profit? b) What is the demand elasticity and Lerner index at the level of output?
The diagram at right shows the demand curve, marginal revenue curve, and cost curves for a single-price monopolist that owns the only golf courses on Eagle Island. The monopolist's product is 18-hole golf games. a. Now suppose the monopolist is able to charge a different price on each different unit sold. What would be the total number of rounds of golf sold per week? rounds. (Round your response to the The total number of rounds sold per week is 600 nearest whole number) What would be the price on the last round sold? The price on the last round sold is $200 (Round your response to the nearest dollar) b. What is the value of the consumer surplus if the monopolist cannot price discriminate at all? The value of the consumer surplus is $ 40000 (Round your response to the nearest dollar) c. What is the value of the consumer surplus when the monopolist is practicing this "perfect price discrimination? The value of the consumer surplus is $ (Round your response to the nearest dollar) Price…
I know that profit maximization for both a competitive and monopolistic market is MC=MR, however MR=P is applicable only in a competitive market and this is a monopoly. How do I solve this?
Below is a representation of the demand curve for diamonds. Assume DeBeers is operating as a monopoly. 1. As a monopolist, what is the total effect of a price change from $2,400 to $1,600 on revenue? Break this change into an increase and a decrease. If you were to do exercise 1 in for every marginal change in price, you would find the marginal revenue curve. The marginal revenue diagram has been provided for the next exercises, along with the marginal costs for DeBeers.
Practice question 3: Answer the question on the basis of the provided demand and cost data for a pure monopolist. 1. The profit-maximizing level of output will be 2. The profit-maximizing monopolist will realize a $ (profit/loss/break-even) equals to Demand Data Price $5.50 5.00 4.50 3.85 3.35 2.90 2.50 Cost Data Quantity Demanded Output Total Cost 3 3 4 4 5 5 6 6 7 7 8 8 9 9 $5.00 6.00 6.50 7.50 9.00 11.00 14.00 3