Industrial EconomicsA prott-maximizing monopolist sells its products in two diferent marketsn the first market, the demand is P, = 70 - 9 in the second market, the demand is P, = 50 - 2 Marginal costs are constant in eachmarket and equal to MC=S10.The total profit that the monopolist will get if it is able to engage in third-degree price discrimination wil beO (a) 2880 $O (b) 3200 SO (c) 2900 SO (d) 3000 SBuccessivo

Third-degree price discrimination occurs when a company charges a different price to different…

Industrial Economics A prott-maximizing monopolist sels its products in two diferent markets n the first market, the demand is P. market and equal to MC=$10 70- in the second market, the demand is P, = 50 - Marginal costs are constant in each The total profit that the monopolist will get if it is able to engage in thind-degree price discrimination wil be O (a) 2880 $ O (b) 3200 S O (c) 2900 $ O (d) 3000 S Buccessivo

Industrial Economics A prott-maximizing monopolist sels its products in two diferent markets n the first market, the demand is P. market and equal to MC=$10 70- in the second market, the demand is P, = 50 - Marginal costs are constant in each The total profit that the monopolist will get if it is able to engage in thind-degree price discrimination wil be O (a) 2880 $ O (b) 3200 S O (c) 2900 $ O (d) 3000 S Buccessivo

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Consider a quantity-setting duopoly. The two firms are Alpha, Ltd. and Beta, Inc. The demand schedulein this market is: p Qd180 150155 175130 200Each firm has a constant marginal cost of 30 per unit. Suppose each firm can choose to produce either 75units or 100 units. Firms make their quantity choices simultaneously and the market price is whatever itneeds to be to sell the total output in the market.(a) Draw up the normal form game matrix, showing the players, strategies, and payoffs. Show your workdetermining the profits in each box in the matrix.(b) Determine the Nash equilibrium of this game.(c) Suppose the firms were able to come to an agreement to make more profit. What would this agreementbe?(d) Explain how the government might respond to such an agreement and why.
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Doubt: Is extraordinary profit for a monopolist condition as (P - MC) x Q ? This would avoids integration method of marginal cost (MC) You mentioned Profit = TR - TC, so is true this condition for monopolist?? Can you confirm it. I urgently need these results
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A monopolist can sell three products, labelled A, B and C. All products are produced at the constant unit cost of SEK 10. There are three buyer types, whose WTPs are reported in Table 1. Show Transcribed Text # of buyers 30 40 30 Products TABLE 1 A B с 70 50 30 50 40 40 30 30 50 2.1. Suppose that the monopolist wishes to bundle product A with exactly one be- tween product B and product C. Which would be the most profitable of these two bundles? Is bundling the two products included in it actually more profitable than selling the products separately? 2.2. Can you provide an intuitive account for the ranking of the profitability of the two bundles established in 2.1? Show Transcribed Text Answer to Problem 2. Part 1. The profits from the two bundles are TAB= 4900 and 7AC = 6000. Hence, A should be bundled with C. The profit from the optimal bundle is greater than the sum of the profits realised by selling the two products independently, which is equal to TA + TC = 4900 (= πA + 7B). Part…
Assume a monopolist faces the following inverse curve: Q = Ap-2. The monop- olist produces at the constant marginal cost m a. Derive an expression for the mark-up the monopolist will charge. b. Derive an expression for the quantity the monopolist will produce. 21 510
ASAP Suppose the market for kiwis has a demand curve of the form: Qd = 200-2Pd And that the costs of the monopoly producer of kiwis are determined by Total Cost (Q) = Variable Cost (Q) + Fixed Cost. C (Q) = Q² + 100. That is, its marginal cost will be: MgC (Qs) = 2Qs = Ps A. If the Government regulates this monopoly so that it does not generate welfare losses, how much should the maximum price to impose be? B. If the Government decides to grant a subsidy to reach the amount of the social optimum, would it stop having a loss of welfare? C. Bonus How much the subsidy should be for each unit so that the amount is reached in the social optimum.
A monopolist with constant marginal cost c and a linear market demand given by Q(p) = A - bp, charges a price of $10 when c = $5. When c decreases to c = $4, the monopolist's price will O not change O decrease by less than $1 O decrease by $1 O decrease by more than $1 O depending on the demand elasticity any of the above is possible