Mark's Day Spa is a single-price monopoly.PriceTotal costThe table shows the demand schedule for Mark's Day Spa (columns 1 and 2) andthe firm's total cost schedule (columns 2 and 3).(dollars pertreatment)Quantity(treatmentsper hour)(dollarsper hour)141Suppose Mark's rent goes up by $7 an hour.13181217What is Mark's new profit-maximizing output, price, and economic profit?11328When Mark's produces its new profit-maximizing output, the number of treatments10441it produces is an hour.556Mark's profit-maximizing price is S|a treatment.Mark's economic profit is S.

A single - price monopoly is the monopolist who charges same price from all the consumers and does…

Mark's Day Spa is a single-price monopoly. Quantity (treatments per hour) Total cost The table shows the demand schedule for Mark's Day Spa (columns 1 and 2) and the firm's total cost schedule (columns 2 and 3). Price (dollars per treatment) 14 (dollars per hour) 1 Suppose Mark's rent goes up by $7 an hour. 13 1 8 12 2 17 What is Mark's new profit-maximizing output, price, and economic profit? 11 28 10 41 When Mark's produces its new profit-maximizing output, the number of treatments it produces is O an hour. 9 56 Mark's profit-maximizing price is SO a treatment. Mark's economic profit is $[ 34L

Mark's Day Spa is a single-price monopoly. Quantity (treatments per hour) Total cost The table shows the demand schedule for Mark's Day Spa (columns 1 and 2) and the firm's total cost schedule (columns 2 and 3). Price (dollars per treatment) 14 (dollars per hour) 1 Suppose Mark's rent goes up by $7 an hour. 13 1 8 12 2 17 What is Mark's new profit-maximizing output, price, and economic profit? 11 28 10 41 When Mark's produces its new profit-maximizing output, the number of treatments it produces is O an hour. 9 56 Mark's profit-maximizing price is SO a treatment. Mark's economic profit is $[ 34L

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

3. A monopolist movie streaming service has two kinds of movies in its library - Action (A) and Romantic Comedies (R). Demand: There are two groups of consumers (Group X and Group Y) for the streaming service with the following value for each movie genre: Genre A Value Group X $100 Group Y $80 Value Group X $50 Group Y $70 Cost: The cost of streaming each type of content is MCA = $0, MCR = $60. Efficient Outcome a) Describe the efficient outcome by filling the table below Should X consume? (Y/N) Should Y consume? (Y/N) Consumption of A Consumption of R Total Efficient Surplus Genre R Surplus from efficient consumption (Value - Cost)
Exercise A.9. Define natural monopoly. What does the size of the market have to do with whether an industry is a natural monopoly?
Dreher's Designer Shirt Company, a monopolist, has the following cost and revenue information. What is the marginal revenue from selling the 5th shirt? COSTS Quantity Produced ($) 1 2 3 4 5 6 7 8 $120 Total Cost Marginal $110 100 140 184 230 280 335 395 475 575 Cost REVENUES Quantity Demanded ($) 0 1 2 3 4 5 6 7 8 Price 170 160 150 140 130 120 110 100 95 Total Revenue Marginal Revenue
6. The following graph shows the demand, marginal revenue, and marginal cost curves for a single-price monopolist that produces a drug that helps relieve arthritis pain.
100.00 90.00 80.00 70.00 60.00 50.00 40.00 30.00 20.00 10.00 $40 $20 $100 0 $60 2 4 MR Suppose that Vanessa who owns a Zumba fitness center in rural Indiana can identify her customers' demand. How much would she charge in order to achieve 1st degree (=perfect) price discrimination? MC ATC D 6 8 10 Quantity (clients per day)
8. Natural monopoly analysis The following graph gives the demand (D) curve for water services in the fictional town of Streamship Springs. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local water company, a natural monopolist. On the following graph, use the black point (plus symbol) to indicate the profit-maximizing price and quantity for this natural monopolist. ? PRICE (Dollars per hundred cubic feet) 40 36 32 28 24 20 16 12 8 0 0 1 MR 2 8 3 4 5 6 7 QUANTITY (Hundreds of cubic feet) ATC True MC False 9 10 The water company must own a scarce resource. D Which of the following statements are true about this natural monopoly? Check all that apply. The water company is experiencing economies of scale. The water company is experiencing diseconomies of scale. + In order for a monopoly to exist in this case, the government must have intervened and created it. Monopoly Outcome True or False: Without…
Suppose there are 5 types of consumers: Type A. Type B. Type C. Type D, and Type E. There are 3,000 of each type. Two software products are sold by a monopolist: spreadsheets and word processing. Assume the marginal cost of production is $0. Consumer Type A B C D E Number 3,000 3.000 3,000 3.000 3,000 Spreadsheet 800 300 200 100 0 b. What is profit at this pricing policy? $ Willingness to Pay Word Processor Instructions: Round your answers to the nearest whole number. a. What will be the profit-maximizing bundle price? $ 0 100 200 300 800 Both 800 400 400 400 800 c. How will profit from this pricing policy compare to profit under independent pricing of the two goods? When pricing independently, the profit-maximizing price for spreadsheets is $ processing is $ d. What is profit under independent pricing? $ and the profit-maximizing price for word
16 The following table shows a monopolist's demand curve and the cost information for the production of its good. What will their profits equal? Quantity Price per Unit Total Cost 10 $100 $100 20 $80 $400 30 $60 $800 40 $40 $1,400 50 $20 $2,400 A $1,000 BO $1,600 CO $1,200 DO $800
Aa21 Economics Assuming that consumers are identical, use an appropriate diagram to show how a monopoly that knows its customers’ demand curve can set a two-part price that has the same properties as the perfect price discrimination equilibrium.
Now pretend Mincer’s has a monopoly on UConn shirts. Draw a graph where Mincer’s is originally making 0 economic profits (D=ATC at profit-maximizing quantity), and then this shift in tastes occurs. Draw the box that represents the new profits/losses in this market, or explain why they will still make 0 profit.
Use the graph below to find the monopolists equilibrium quantity and price. 40 26.67 MC ATC 20 13.33 33.33 66.67 100 50 MR Textbools per week What is this monopolists profit maximizing quantity? Simply select the correct quantity from the dropdown box. I Select] What price will the monopolist charge to maximize profits? Simply select the correct number from the dropdown box. [Select ]
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?