please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly Refer to the graph below. If the monopolist can perfectly price discriminate (chargeeach buyer the maximum price he or she is willing to pay) they will produce ___goods to maximize profit.edCbaMRVwX Y ZMC

The rationale is that in the case of perfect price discrimination, the monopolist can extract the…

Answered: Refer to the graph below. If the…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter13: Monopoly And Antitrust

Section: Chapter Questions

Problem 9P

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Imagine that you ale 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?
How can a monopolist identify the profit-maximizing level of output if it knows its total revenue and total cost curves?
Draw a monopolists demand curve, marginal revenue, and marginal cost curves. Identify the monopolists profit-maximizing output level. Now, think about a slightly higher level of output (sayQ0+1). According to the graph, is there any consumer willing to pay more than the marginal cost of that new level of output? If so, what does this mean?
The following table refers to information about a monopolist. The demand and total cost schedules for the monopolist are presented. Quantity 1 2 34 5 6 7 ܒܢ Calculate the marginal revenue from selling the 4th unit of output. Express your answer without units (e.g., if your answer is "$400", write "400" in the answer box). Type your answer... W 3 LU E a $ 4 R ddelddeelala www 000 6 Sº % Price $30 $28 $26 $24 $22 $20 $18 5 T 6 MacBook Pro Y & 7 A U * 00 8 1 Total cost $10 $20 $30 $40 $50 $60 $70 W 9 P O O T a
The table shows the demand schedule of a monopolist. Calculate marginal revenue, and fill in the revenue column in the tabl Assume that output can only be sold in integer amounts (i.c.. I unit, 2 units, etc.). Once you have filled in the columns for marginal revenue, identify the quantity produced by the monopolist in this market. MR, MR3 Quantity Price Marginal Cust $13 $3 Marginal Revenue MR 2 $12 $4 MR 3 $11 $5 MR 4 $10 $6 MR. 5 $9 $7 MR5 6 $8 $8 MR6 MR2: MR
V10
Consider the graph below representing a monopolist: Price Po aa P₁ P₂ A C What will be the equilibrium price and quantity? O Price will be PO and quantity will be Q1 O Price will be P1 and quantity will be Q1 O Price will be P2 and quantity will be QO O Price will be PO and quantity will be QO B Quantity
The diagram shows the equilibrium of a profit-maximising monopolist. Cost/revenue (£) Which area represents the supernormal profits made by the monopolist? OABQ MC ABDH AC ABFG B JCFG Al АВСЈ G AR MR Quantity (Q) O o o O O
E4 How much extra profit does the monopolist earn when he increases the price from $12 to $18
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.
For the monopolist show in Figure 12-2, how much profit is the monopolist making per unit? a Figure 12-2 P U x H d X G T [ Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. b The amount shown as GE The amount shown as HE The amount shown as HF A The amount shown as FE MC D MR AC Open
b bMy Question X WMonop HW X Σ Σ G + f G Office Editing for Docs, Sheets & Slides chrome-extension://bpmcpldpdmajfigpchkicefoigmkfalc/... The quantity has been found for you by finding where MC-MR. The monopolist sets price by charging as high as demand will bear at that quantity. So once the quantity has been found, go upon the dotted is the price. Total Revenue is PxQ, Total costs are found by finding the average cost and multiplving by O. ATC AVC 100 100 MR What is the optimal quantity? What is the price? What is Total Revenue? What is Total Cost? What is Total Variable Cost? What is Total Fixed Cost? [Hint: Average fixed cost is the vertical distance between the ATC and AVC curves at the optimal Q.] Is there a profit or a loss? How much? 8 11:02

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Refer to the graph below. If the monopolist can perfectly price discriminate (charge each buyer the maximum price he or she is willing to pay) they will produce ___ goods to maximize profit. e d C b a MR V w X Y Z MC