Price2624MC2220181614121086420012RegulatedpriceDMRQuantity5 6 7 8 9 10 11 12 13 14 15Please answer the following questions based on the graph given above, which is for amonopoly firm.(a) What price will an unregulated monopoly charge?(b) What quantity will an unregulated monopoly produce?(c) If the regulated price is $10 per unit, how many units will the regulated monopolyproduce?(d) What is the quantity demanded at the regulated price of $10? Is there a surplus or ashortage or neither at the regulated price?2. (5 points) You are an industry analyst who specializes in an industry where the marketinverse demand is P=200-4Q. The Marginal Revenue is MR = 200 - 8Q. The externalmarginal cost of producing the product is MC External = 6Q, and the internal marginal cost isMC Internal = 12Q.(a) What is the socially efficient level of output? Please show your calculations.(b) Given these costs and market demand, how much output would a monopolist produce? Pleaseshow your calculations.(c) Discuss any one policy the government might implement to induce firms in thisindustry to produce the socially efficient level of output.

1. Monopoly Firm Graph AnalysisBased on the graph provided:(a) Unregulated Monopoly Price:- An…

Answered: Price 26 24 MC 22 20 18 16 14 12 10 8 6…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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The diagram below represents a monopoly market with one privately owned power generator. P 90 75 60 45 30 15 10 20 30 40 ATC 50 b1. Show the expected social losses from having a monopoly. Draw in any extra lines you need to show your solution. b2. If a law is passed requiring marginal cost pricing in the above market, what problem would there be for this privately owned power generator. Support your answer with a diagram.
9
P $9 $7 55 B 300 rounds 740 rounds. 900 rounds MC ATC 1.200 rounds MRWD DWD $10 $9 0 100 200 350 Q 0 100 120 200 Q The graphs represent the demand for use of a local golf course for which there is no significant competition. It has a local monopoly.) P denotes the price of a round of goif and Q is the quantity of rounds sold each day. If the left graph represents the demand during weekdays and the right graph the weekend demand then over the course of a full seven-day week, this price discriminating profit-maximizing golf course should sel a total of $4 MRWE MC ATC Pwe
d) If a price ceiling of $17.50 is imposed by the government on the monopolist, estimate (based on the graph) the quantity that the monopolist will produce. In this case, does the price ceiling in a monopoly improve economic efficiency or not? e) Supposed that instead of a regular monopoly, the graph above pertains to a natural monopoly, what change must be made to the graph to depict a natural monopoly?
PRICE (Dollars per gigabyte of data) 20 18 16 14 0 0 2 MR 5 QUANTITY (Gigabytes of data) 6 O True False 8 ATC MC 9 10 D + Which of the following statements are true about this natural monopoly? Check all that apply. Monopoly Outcome It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The 5G LTE company is experiencing diseconomies of scale. The 5G LTE company is experiencing economies of scale. In order for a monopoly to exist in this case, the government must have intervened and created it. True or False: Without government regulation, natural monopolies never earn zero profit in the long run.
The graph shown represents the cost and revenue curves faced by a monopoly 18 876543N-OOO7SSAMNI 17 16 15 14 S 13 12 11 10 9 2 1 MC ATC X MR %70%85% -% 90 A. II only B. I and III C. I only D. II and III only 100 110 Which of the following statements is true? . The monopolist's profit maximizing price is $12. 2. The monopolist's profit maximizing quantity is 100. . The monopolist will earn zero profits. 120 130 140 150 160 170 D Quantity
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.…
1. Asssume the following equations describe the conditions for an unregulated monopoly: Qd = q = 25,000 -100P or P = 250-0.01q TC = 480,000 + 70q + 0.005q2 where Qd is the quantity demanded for the firm, P is the commodity's price in dollars, TC is total cost in dollars, and q is the quantity of output produced. Based upon the above equations, answer the following questions: a. What is the firm's profit maximizing quantity of output? b. What price will the firm charge for the commodity c. What does the firm's total economic profit equal? d. What is the amount of deadweight loss that exists given the monopoly is unregulated? Assume the government is now going to regulate this monopoly, and the regulators want to guarentee the monopolist produces the socially optimal quantity of output. e. What is the socially optimal quantity of output? f. What price would regulators establish to guarantee the monopolist produces the socially optimal quantity of output? g. What does the firm's…
3. Natural monopoly analysis The following graph gives the demand (D) curve for satellite TV 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 satellite TV 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 subscription) 100 90 80 70 60 50 40 30 20 10 0 0 2 4 MR True 10 12 14 QUANTITY (Number of subscriptions) 16 False ATC MC 18 20 D Which of the following statements are true about this natural monopoly? Check all that apply. Monopoly Outcome In order for a monopoly to exist in this case, the government must have intervened and created it. It is more efficient on the cost side for one producer to exist in this market rather than a large number of producers. The satellite TV company must own a scarce resource.…
3. Natural monopoly analysis The following graph gives the demand (D) curve for 5G LTE 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 5G LTE 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. 18 16 2006 ± 14 12 1 PRICE (Dollars per gigabyte of data) ° 00 2 Monopoly Outcome ATC MC D MR 0 + + 0 1 2 3 4 5 6 7 8 9 10 QUANTITY (Gigabytes of data)
Q15: Refer to Figure 6-1 i Describe the area representing the deadweight loss to society due to monopoly. What curves is it between and/or above and/or below? Between what prices and/or quantities, if applicable? It may help to say why this is a loss to society.
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