Question 3: MonopolyBased on market research, a film production company in Ectenia obtains the followinginformation about the demand and production costs of its new DVD:Demand: P = 1000 – 10Q,1000Q – 10Q²= 1000 – 20QTotal reveпие:TR 3Marginal Revenue:MRMarginal Cost: MC = 100 +10Qwhere Q indicates the number of copies sold and P is the price in Ectenian dollars.a. Find the price and quantity that maximize the company's profit.b. Find the price and quantity that would maximize social welfare.c. Calculate the deadweight loss from monopoly.d. Suppose, in addition to the costs above, the director of the film has to be paid. Thecompany is considering four options:i. a flat fee of 2,000 Ectenian dollars.ii. 50 percent of the profits.iii. 150 Ectenian dollars per unit sold.iv. 50 percent of the revenue.For each option, calculate the profit-maximizing price and quantity. Which, if any, of thesecompensation schemes would alter the deadweight loss from monopoly? Explain.

Since there are multiple subparts in the question, only the first three sub parts will be answered…

Answered: Question 3: Monopoly Based on market…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Mustapha maintains a monopoly in the holographic TV market because of its patent but it is about to expire. The market demand and Mustapha’s production cost are given by: P = 100 − 0.5? and ?? = 100 + 0.5Q2 The monopoly profit is. a. $3,750.00 b. $2,400.00 c. $3,000.00 d. $2,500.00
The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly a. Place point Pi at the profit maximizing price and quantitvy assuming that the monopolist can only charge a single price. 100 95 90 85 80 75 70 65 2 60 b. What are the profits of the firm if it charges a single price? 50 45 Suppose the monopolist able to successfully price discriminate between two groups by charging one group $60 and charging $35 to the other group. c. What are the firm's profits if it charges the two prices as mentioned above? 35 30 25 20 15 10 MR 0 5 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100 Quantity
Explain (verbally and with a graph) the basic concept of Natural Monopoly and give 2 examples for real world public expenditures that can be justified by this case of market failure.
A manufacturing company has a monopoly on the production. A single (individual) manufacturer demand for mixer is Q = 4 − P. The marginal cost of producing mixer is $1. Solve the following: 1. Profit-maximizing monopoly, quantity, price, and profit from serving this single concrete contractor.2. What would the quantity be if the Manufacturing company serves 100 mixercontractor identical to this one?
a) What are the output and price where the firm’s profit is maximum? What is the firm’s economic profit? Show solution. b) Determine the deadweight loss for this market. What is the source of the deadweight loss in a monopoly? c) If government regulators where to ask the firm to charge a price and quantity that would be socially (or allocatively) efficient, what would these price and quantity be? At this output and price, what would happen to the consumer surplus, producer surplus and total surplus compared to the situation under monopoly.
Pls solve sub questions 1, 2 and 3 only
**You only need to answer Question C*
Suppose there are 1,000 potential customers spread evenly along a 10 kilometre straight road and each potential customer will buy one pizza per day from a monopolist provided that the price plus any disutility cost does not exceed $10, where disutility cost of travel is $1 for every kilometre. Each pizza costs $6 to make and there is a $70 overhead cost per day to operate the shop. What is the maximum profit per day? a. $1,130 b. $530 c. $930 d. $730 Clear my choice
2. Given the demand curve of the monopolist Q = 60 - 2P and the cost function of the monopolist TC = 50-4Q+ 0.5 Q^{2}, Then find: A. The inverse demand function, average revenue, the marginal revenue functions, marginal cost function? B. Find the level of output and price that maximizes the monopolist profit? C. The level of profit at equilibrium. D. Show graphically profit maximization level of output?
1. Consider a monopolist where the market demand curve for the produce is given by P = 520 2Q. This monopolist has marginal costs that can be expressed as MC = 100 + 2Q and total costs that can be expressed as TC = 100Q + Q2 + 50.a. Given the above information, what is this monopolists profit maximizing price and output if it charges a single price?b. Given the above information, calculate this single price monopolists profit.c. At the profit maximizing quantity, what is this monopolists average total cost of production (ATC)?
Can you help with parts d,e, and f please? Assume the following equations describe the conditions for a monopoly: Qd = 2,000 - 100P TC = 3,500 + 5q + .005q2 Where Qd is the quantity demanded, P is the commodity's price in dollars, TC is the firm's total cost in dollars and q is the quantity of output produced. Based upon these equations, answer the following questions:a. What is the firm's equation for total revenue expressed as a function of quantity? b. What is the firm's equation for marginal revenue expressed as a function of quantity? What is the firm's equation for marginal cost expressed as a function of quantity? c. What is the firm's profit maximizing quantity of output? d. What price will the firm charge for the commodity? e. What would be the socially optimal quantity of output? f. What price would regulators have to establish in order to have the firm produce the socially optimal quantity of output?
The first three sub-parts of my question are solved. I want to get to be solved the remaining 4th sub-part, please.

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