P (5) 88 80 50 0 36 B) 0. Reference: Ref-Figure: Primary Market of Tickets A) 48,000. MC 48 MR (Figure: Primary Market of Tickets) Look at the figure Primary Market of Tickets. The figure shows the demand, marginal revenue and marginal cost curves of a monopolist. If instead of behaving as a monopolist, the seller behaves as a perfect competitor, the number of tickets sold would be: C) 12,000. D) 36,000. Q (thousands)

P (5) 88 80 50 0 36 B) 0. Reference: Ref-Figure: Primary Market of Tickets A) 48,000. MC 48 MR (Figure: Primary Market of Tickets) Look at the figure Primary Market of Tickets. The figure shows the demand, marginal revenue and marginal cost curves of a monopolist. If instead of behaving as a monopolist, the seller behaves as a perfect competitor, the number of tickets sold would be: C) 12,000. D) 36,000. Q (thousands)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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33) Kate's Great Crete (KGC) is a local monopolist of ready-mix concrete. Its annual demand function is Q=20,000 - 400P, where P is the price, in dollars, of a cubic yard of concrete and Q is the number of cubic yards sold per year. What is the difference between price and marginal revenue when KGC sells 5,000 cubic years of concrete per year? A) $12.50 B) $25.00 C) $37.50 D) $50.00
(Figure: Electricity Generation). What is this monopolist's maximum profit? Group of answer choices $300 $400 $1000 $810
Please provide answer in 1 hr
3. A monopolist can produce at constant average and marginal costs of AC = MC = 5. The firm faces a market demand curve given by Q = 55-P. (a) Calculate the profit-maximizing price-quantity combination for the monopolist. Also, calculate the monopolist's profits. Graph the relevant functions to illustrate these. (b) What output level would be produced by this industry under perfect competition (where price = marginal cost)? Indicate this on the graph. (c) Calculate the consumer surplus obtained by consumers in case (b). Show that this exceeds the sum of the monopolist's profits and the consumer surplus received in case (a). What is the value of the deadweight loss from monopolization? Indicate these on the graph.
(True/False. Explain) A monopolist can convert the entire customer surplus into profit. Provide examples of monopoly in the US market. How do they keep the deadweight loss low?
4 Use the information in this question to answer questions (36-40). Accenture Technologies, a monopolist sells in two geographically divided markets, Europe (E) and U.S.A.(W). Marginal cost is constant at $50 in both markets. Demand and marginal revenue in each market are as follows:QE = 900 – 2PEMRE = 450 – QE;QW = 700 – PWMRW = 700 – 2QW In which market is demand more elastic? (a). Demand is more elastic in the U.S.A.(b). Demand is more elastic in the Europe.(c). Demand is not elastic in either Europe or U.S.A.
3. Natural monopoly analysis The following graph shows the demand (D) for gas services in the imaginary town of Utilityburg. The graph also shows the marginal revenue (MR) curve, the marginal cost (MC) curve, and the average total cost (ATC) curve for the local gas 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. (? 20 18 Monopoly Outcome 16 14 12 10 8 ATC MC MR D 1 6 7 8 9 10 QUANTITY (Hundreds of cubic feet) Which of the following statements are true about this natural monopoly? Check all that apply. O It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. O The gas company must own a scarce resource. The gas company is experiencing economies of scale. O In order for a monopoly to exist in this case, the government must have intervened and created it. True or False: Without government regulation,…
Question 4
Problem 11-04 (algo) ou are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your irm have determined that group 1's elasticity of demand is -5, while group 2's is -2. Your marginal cost of producing the product is 630 a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2 $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. ?At least one group has elasticity of demand greater than 1 in absolute value. ?At least one group has elasticity of demand less than one in absolute value.…
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29. Imagine that you are managing a small firm and thinking about entering the market of a monopolist. The monopolist is currently charging a high price, and you have calculated that you can make a nice profit charging 10% less than the monopolist. Before you go ahead and challenge the monopolist, what possibility should you consider for how the monopolist might react?
Q44 and 45