Review the graph at right for a nonlinear price discriminating monopolist relying on two prices, $80 and $60.How much is the consumer surplus? $(round your answer to the nearest penny)(round your answer to the nearest penny)(round your answer to the nearest penny)How much is the producer surplus? $SHow much is the deadweight loss? $STotal welfare is $ (round your answer to the nearest penny)SBoud8100-90-80-70-60-50-40-30-20+10-040MCD10 20 30 40 50 60 70 80 90 100QuantityQ

Consumer surplus refers to benefit received by consumers that pay a price lower than their willing…

Review the graph at right for a nonlinear price discriminating monopolist relying on two prices, $80 and $80. How much is the consumer surplus? $ How much is the producer surplus? $ (round your answer to the nearest ponny) (round your answer to the nearest penny) How much is the deadweight loss? $ (round your answer to the nearest penny) Total welfare is $ (round your answer to the nearest penny) 100 90- 80+ 70+ 60- 50- 40- 30- 20- 10- MC ID 0 10 20 30 40 50 60 70 60 90 100 Quantity

Review the graph at right for a nonlinear price discriminating monopolist relying on two prices, $80 and $80. How much is the consumer surplus? $ How much is the producer surplus? $ (round your answer to the nearest ponny) (round your answer to the nearest penny) How much is the deadweight loss? $ (round your answer to the nearest penny) Total welfare is $ (round your answer to the nearest penny) 100 90- 80+ 70+ 60- 50- 40- 30- 20- 10- MC ID 0 10 20 30 40 50 60 70 60 90 100 Quantity

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

if a natural monopolist practices perfect price disrimination, how does it affect the profit-maximizing level of output, consumer surplus, producer surplus, total surplus, and deadweight loss? explain with a diagram.
2. If the ratio of marginal utility to price for steak is 2.67 and if the patron increases the consumption of steak, how does the ratio of marginal utility to price tend to change? How and why does it change the way it does? Briefly explain your answer below and make sure to address both parts of the ratio. Don't just focus on the math but also incorporate the idea of consumption.
Figure 3. P, Costs 20 15 50 40 30 30 40 45 MR D MC ATC Q
The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for a monopolist. Suppose that this monopolist cannot price discriminate. Place the grey point (star symbol) on the graph to indicate the profit-maximizing price and quantity for this monopolist. If the monopolist is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if the monopolist is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. PRICE AND COST (Dolars) 100 8 8 R 90 70 329222 50 10 0 0 10 MC 20 30 MR 60 50 QUANTITY 40 ATC 79 00 D 90 100 . Monopoly Outcome Profit Loss
A movie monopolist sells to college students and other adults. The demand function for students is Q1,800-25P, and the demand function for other adults is Q=2,400-25P. The marginal cost is $2 per ticket. Instructions: Round your answers to 2 decimal places. a. What is the effect of price discrimination on consumer and aggregate surplus? CS=$ AS = $ b. What is the effect without price discrimination on consumer and aggregate surplus? CS = $ AS = $
Are my answers for d,e and f correct? D. False E. True F. True
What is the quantity that maximizes social surplus? Explain. How much worse off is society as a result of this industry being monopolized? Show this on a graph and calculate the amount. Info needed in image below
O OO The above graph shows the market demand function for a product. Assume that the market is served by a perfectly-price-discriminating monopolist with a constant marginal cost of production equal to $4 (MC = $4) and no fixed cost (FC = 0). The deadweight loss equals: DWL - $72 DWL - $0 DWL- -$48 DWL - $84 DWL-$36 $30 $28 $26 $24 $22 $20 Question 23 $18 $16 $14 $12 $10 $8 $6 $4 $2 $0 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
The demand equation for a monopolist is given by P = 50 - 2Q and the marginal cost is $10. i Compute the deadweight loss associated with monopoly pricing. ii. If P = 50 - 4Q, what is the deadweight loss? iii. Based on your answers to (a) and (b), how is the deadweight loss related to the slope of the demand curve?
The monopolist faces the following demand curve: Price $20 Quantity 15 $19.50 16 $19 17 $18.50 18 $18 19 $17.50 20 $17 21 $16.50 22 $16 23 If the monopolist has total fixed costs of $40 and a constant marginal cost of $10, how much profit can the firm earn at the profit-maximizing level of output?
Discuss the basic differences between a competitive and a monopoly market. Which market has higher elastic demand in the long run and why?
Graphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit, where the marginal revenue of the 250th unit is $40, the marginal cost of the 250th unit is $50, and the average total cost at 250 units is $60. [Hint: Based on the information given, is the quantity you’re asked to show the profit-maximizing quantity? Think about what has to be true for profit-maximization.] Based on the graph and assuming the firm attempts to profit maximize (and succeeds), what would happen to price, quantity, MR, MC, and ATC? (rise, fall, or stay the same?)