s) Suppose that a monopoly can price discriminate between two markets: 6. ( market 1 where the demand curve is given by q1 = 2 – P1, and market 2 where the demand is given by q2 = 4 – P2. Assume that the monopoly produces each unit at a cost of c = 1. (a) Find (q, pM, qM , p"). (b) Suppose that price discrimination is no longer possible. Find (qM,pM).

s) Suppose that a monopoly can price discriminate between two markets: 6. ( market 1 where the demand curve is given by q1 = 2 – P1, and market 2 where the demand is given by q2 = 4 – P2. Assume that the monopoly produces each unit at a cost of c = 1. (a) Find (q, pM, qM , p"). (b) Suppose that price discrimination is no longer possible. Find (qM,pM).

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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I would like help specifically for question 4 of this problem. Questions 1-3 are provided for context. Thank you.
Assume a single-price monopolist has an inverse market demand curve given by P(Q)=300-0.5Q, and has a cost curve: C(Q)=125+20Q+0.5Q2. We already know that Monopolist will provide 140 units, Economic profit is 19475, and Economic Rent is 190. If the impact of a 35% ad valorem tax imposed on the consumers in the market. Then: Q1: What is the equilibrium quantity will be sold in the after-tax equilibrium? Q2: What are the economic rents of the monopolist?
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Use the following to answer questions (1)-(6): Suppose a monopolist sells a product to consumers for which a particular consumer's choice is whether to buy 1 unit of the product or not to buy the product. In the absence of price discrimination, the market demand for the monopolist's product is: Q-150-%P. Further, the firm's short-run total cost is: TC-1000 + 100Q. Now, knowing each consumer's reservation price, imagine the monopolist wishes to engage in first-degree price discrimination. [1] A particular consumer's reservation price corresponds to the maximum amount they a willing to pay to buy 1 unit of the product. A. B. [2] Wishing to maximize profit from first-degree price discrimination, the monopolist should sell a quantity equal to: A. 50 B. 75 C. 100 D. None of the above [3] Continuing question (2), at the quantity chosen the consumer willing to pay the least for the product has a reservation price exceeding $50. A. B. [4] A. B. C. D. [5] True False A. B. C. D. [6] A. B. True…
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Question 1 ( A monopolist sells Soma at the same price into two different markets. The inverse demand for Soma in market #1 is denoted p1(g) = 15 – q. The demand for Soma in market #2 is given by D2(p) = 80 – 3p. Assume the monopolist's cost function is C(q) = log(1 + q), where q represents the total quantity produced. (Note: (1) log denotes natural logarithm; (2) Round all answers to 2 decimal places.) 1. What is the profit maximizing quantity for the monopolist? 1 Answer:. Justification:
2) Suppose that consumers of a good can be represented by the demand function Q (P) = 50 - P. The good is manufactured by an upstream monopolist with cost function C (q) = Q2 + 2Q + 10. A downstream monopolist resells the good to consumers (without further production activity) (a) Determine the industry outcome, profits and consumer surplus. (b) Consider a vertical merger. Compare the industry outcome, profits and consumer surplus to part (a). (c) Suppose the upstream monopolist franchises the product to the downstream firm. Which two - part tariff should the upstream monopolist choose? Determine the profits of the firms.
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Consider a monopolist who chooses to provide special discount to a group of customers with low willingness to pay—say, students, or seniors, or people living in a lower-income country. That kind of behavior cannot be explained by standard microeconomic theory, since a profit-maximizing monopolist would never want to provide any discounts.(a) True. (b) False.
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1. Given the demand function and total cost function in monopoly market: Q = 120 – 5P TC = 100+3Q+0.005Q2 where Q is the quantity produced, P is the price and TC is the total cost ($). (1) Please find the optimal Q and P for the objective of Maximum Total Profit. (2) Please find the optimal Q and P for the objective of Maximum Net Total Benefit. (3) Please compare the social welfare, consumer surplus and producer surplus for these two objectives. 2. What is Oligopoly? Please give 5 examples of Oligopoly market.