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- How much is the maximum profit a monopolist can earn? TC 10 15 25 40 60 Q 0 1 2 34 Select one: O a. 11 O b. 9 O c. 19 O d. 15 Price 40 30 20 10 0Question 26 Suppose a uniform price monopoly has a demand curve given by p=12-q (& MR=12-2q) and total cost given by TC=2q (& MC=2) This monopolist have a learner's index of than competitive quantity % and produce an output % smaller O 71, 25 52, 45 71, 100 О 100, 82What is generally the case for a monopolist's average revenue? Select one: O a. It is equal to marginal revenue. O b. It is equal to the price of its product. O c. It is less than the price of its product. O d. It is greater than the price of its product.
- Suppose the table below describes the relationship between price and quantity demanded for a monopolist. Quantity 1 2 3 4 5 6 7 8 O If the marginal cost of producing each unit of output is $5, then this monopolist maximizes its profit by charging __________ per unit. O $8 $5 $3 Price $10 $9 $8 $7 $6 $5 $4 $3 $6A monopoly firm's total cost is: TC(Q) =Q' + 15Q + 225. if the industry's demand curve is described by P= 195 - 4Q. What price will this firm charge if it is applying the profit maximizing rule? (Hint: MC = 20 + 15) O a. $ 105.00 O b. $ 75.00 O c.$ 145.00 O d. $ 127.50 O e. $ 123.00A monopolist faces the demand curve illustrated below. 12 9 -1 -2 12 13 11 15 15 1 1s 19 20 21 22 23 24 Suppose the monopolist faces a marginal cost of $5, and that there are no fixed costs. Thus, the marginal cost is equal to the average total cost in this case. Given this, what is the monopolist's profit maximizing price if it is not able to price discriminate O $5 O $8.33 O $2 O $10 $7.50 N O087654321
- When consumers are maximizing their utility, they have to consider choosing the optimal combination of goods to buy. All of these O Their indifference curves The prices of each good Their income whens Assume that a monopolist is able to engage in perfect price discrimination and sell each unit of the product at a price equal to the maximum price the buyer of that unit of the product would be willing to pay. Complete the table below by computing total revenue and marginal revenue for the price discriminating monopolist. Quantity Price Total revenue Marginal revenue Total Cost Marginal cost 0 $34 $ 1 32 30 28 26 24 22 20 18 16 14 234SSN 5 6 7 89 10 $ $20 36 46 50 54 56 64 80 100 128 160 $ (a) What is the marginal revenue that the discriminating monopost obtains from the sale of each additional unit? (b) How many units would be produced and what would be the total revenue for the perfectly discriminating monopolist? What would economic profits be? (c) Compare the economic effects of price discrimination to no price discrimination for the pure monopolist in terms of profits and the level of output.Many schemes for price discrimination involvesome cost. For example, discount coupons take upthe time and resources of both the buyer and theseller. This question considers the implications ofcostly price discrimination. To keep things simple,let’s assume that our monopolist’s production costsare simply proportional to output so that averagetotal cost and marginal cost are constant and equalto each other.a. Draw the cost, demand, and marginal-revenuecurves for the monopolist. Show the pricethe monopolist would charge without pricediscrimination.b. In your diagram, mark the area equal to themonopolist’s profit and call it X. Mark thearea equal to consumer surplus and call it Y.Mark the area equal to the deadweight loss andcall it Z.c. Now suppose that the monopolist can perfectlyprice discriminate. What is the monopolist’sprofit? (Give your answer in terms of X, Y,and Z.)d. What is the change in the monopolist’s profit fromprice discrimination? What is the change in totalsurplus from…
- A monopolist has constant marginal cost equal to 30 and faces a market demand curve given by the following p= 100-2Q. If the monopolist is a perfect price discriminating monopolist its level of profit will be equal to (assume there is no fixed cost): O 1225. O 2450. O2275. O 1150. auto.proctoru.com is sharing your screen. Stop sharing Hide Next • Previous UN 18 SAPAssuming that the price is greater than the average variable cost, a monopolist maximizes profits at the output for which (picture a graph): O price is equal to marginal revenue in the downward part of the marginal cost curve O marginal cost is equal to marginal revenue in the upward sloping part of the marginal cost curve O average variable cost and average total cost are in the downward part of their curves and price is equal to marginal cost O average total cost is at the lowest pointFigure Monpo12: A Fim in An Imperfectly Competitive Industry Price MC Given: Q* = 120 P* = S4.00 PATC = S3.40 P* %3D ATC AVC PATC PAVC PAVC = S0.50 D MR Q* Quantity Refer to Figure Monpo12. Profits for this monopoly is about O $72 O No answer text provided. O $74 O No answer text provided.
