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 Quantity Demanded 3 4 5 6 7 8 9 Cost Data Output Total Cost 3 4 5 6 7 8 9 $5.00 6.00 6.50 7.50 9.00 11.00 14.00

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 Quantity Demanded 3 4 5 6 7 8 9 Cost Data Output Total Cost 3 4 5 6 7 8 9 $5.00 6.00 6.50 7.50 9.00 11.00 14.00

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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An amusement park has identified its demand functions as follows: Q = 50-3P The marginal operating cost of each unit of quantity is $5 and there are no fixed costs. The park is a monopolist and exercises significant price making power in the market. 1. If the monopolist charges same price for every unit, for what price are his profits maximized? How many units will be sold at that price? What are his total profits?
The table below shows the marginal revenue and costs for a monopolist. Demand, Costs, and Revenues Price (dollars) Quantity Demanded $85 79 73 67 61 55 50 150 250 350 450 550 Marginal Revenue (dollars) $85 76 64 1. 250; -$3,625 2. 250; $3,625 3. 350; -$3,625 4. 350; $4625 52 40 28 Marginal Cost (dollars) $25 85 64 61 67 77 Average Total Cost (dol $139.00 103.30 87.50 80.00 77.00 77.00 The monopolist's profit-maximizing level of output is...................its and the monopolist's profit at the profit maximizing output is....
Solve all this question......you will not solve all questions then I will give you down?? upvote.
Suppose that a monopolist calculates that at its present output level, marginal cost is $4.00 and marginal revenue is $4.00. The firm could increase profits by Multiple Choice increasing price and decreasing output. increasing price and maintaining its current output. decreasing price and leaving output unchanged. decreasing output and leaving price unchanged.
QUESTION 3: Consider the demand and cost curves for a local utilities firm. All underlying work must be shown. MC $11.50 AC $9.00 $8.00 $5. 50 MR 300 1000 1400 1600 Quantity A) Refer to the graph above. If this monopolist were allowed to choose the profit-maximizing level of output, it would produce and charge price of A) 1000 units of output; $11.50 B) 1400 units of output; $9.00 C) 300 units of output; $11.50 D) 1600 units of output; $8.00 B) Refer to the graph above. At the profit maximizing output level, this monopolist would eam: A) Positive economic profit of $3,000. B) Zero economic profit (is breaking even). B) Negative economic profit of $6,000 D) Positive economic profit of $6,000 C) Refer to the graph above. At the profit maximizing output level and price this monopolist would reduce economic surplus and market efficiency by: A) $1,200 B) $2,400 C) $2,200 D) $3,000
Use the graph to answer the following 5 questions. A single priced unregulated monopolist faces the demand curve and has the cost curves illustrated in the diagram below. 1. What is the profit Price maximizing quantity of output? 70 a) 25 units. b) 40 units. c) 50 units. d) 60 units. 60 e) 70 units. f) 80 units g) 90 units Marginal Cost 50 2. What price does this monopolist charge? a) $58 b) $20 40 Average Total Cost c) $35 d) $30 e) $45. f) $50 30 g) $40 h) $38 3. What are the total profits? a) $1200 b) $0 c) $1250 d) $200 e) $250. f) $2250. g) $150 h) $1600 20 10 Demand 20 40 60 80 100 120 140 160 Quantity
Subpart 7
Assume a monopolist faces the demand schedule given below and a constant marginal cost of $2 for each unit of output. Fill in the total and marginal revenue amounts in the table. Part 2 To maximize profits, this monopolist would produce_______ units of output at a price of $ ________ per unit.
Question 33 Suppose a monopolist faces the demand curve P = 200 – 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true? The monopolist sells 33 units at a profit of 3300. The monopolist sells 33 units at a profit of 1650. The monopolist sells 50 units at a profit of 5000. The monopolist sells 50 units at a profit of 2500.
QUESTION 1 A. The total cost function for a monopolist is given by TC = 44,000 + 180Q + 0.03Q² and the demand function is P = 420 – 0.06Q per unit of output. i. What is the profit maximising level of output? ii. Calculate the profit maximizing price. iii. Calculate total profit at the profit maximising level of output.
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