Styles Find and depict the following items within the diagram and briefly explain how you found them: Price Demand Marginal Cost Quantity a) The efficient (i.e., total surplus maximising) quantity. b) The monopolist's profit maximising quantity. c) The monopolist's profit maximising price.
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- A monopolist has a demand curve given by Q=100-P and a total cost curve given by TC= Q2 + 16. Find the monopolist’s profit maximizing quantity and price. Indicate them on the graph. How much economic profit will the monopolist earn? Calculate the price elasticity of demand at the equilibrium price level.Suppose a monopoly firm has the following Cost and Demand functions: TC=Q2 P=80-Q MC=2Q MR=80-2Q Carefully explain what the firm is doing and why. Find the firm’s Profit maximizing Q Find the firm’s Profit maximizing P. Find the firm’s Profit. Suppose because of an advertising campaign, which costs $500, the monopoly’s demand curve is: P=100-Q so its MR= 100-2Q. MC=2Q Looking closely at the TC function and the demand curve, explain the effects of the advertising campaign on the equations compared with the equations above in part 1. Find the firm’s Profit maximizing Q Find the firm’s Profit maximizing P. Find the firm’s Profit. Was the advertising campaign successful? Compare 2 w/ 1. Why?In the following table are demand and cost data for a pure monopolist. Complete the table by filling in the columns for total revenue, marginal revenue, and marginal cost. Total revenue Marginal revenue Total cost Marginal cost Quantity Price $34 $ 20 32 36 30 46 28 50 26 54 24 56 22 64 20 80 18 100 16 128 10 14 160 (a) What output will this monopolist produce? (b) What price will the monopolist charge? (c) What total profit will the monopolist receive at the profit-maximizing level of output? (d) Generally, what are the relative values of price, ATC, and AVC when a monopolist experiences: a profit a loss but continues to produce a loss but ceases production |이-234567 8 9 은
- The following table gives total revenue and cost for a monopolist: Quantity Price Total Revenue Total Cost 100 1 185 150 130 180 290 170 175 415 222 4 170 520 287 165 600 367 160 655 467 155 685 587 150 685 737 If the market were competitive how much lower would the price of the good be? lower What is the producer surplus of the monopolist? %24Refer to the accompanying graph to answer the next six questions. Price D MR D and H B and F A and H Which price and quantity combination is most desirable from the monopolist firm's point of view? A and E G H C and G D ATC MC QuantityRent seeking The following graph shows the demand, marginal revenue, and marginal cost curves for a single-price monopolist that produces a drug that helps relieve arthritis pain. Place the grey point (star symbol) in the appropriate location on the graph to indicate the monopoly outcome such that the dashed lines reveal the profit-maximizing price and quantity of a single-price monopolist. Then, use the green rectangle (triangle symbols) to show the profits earned by the monopolist. table 1 Suppose that should the patent on this particular drug expire, the market would become perfectly competitive, with new firms immediately entering the market with essentially identical products. Further suppose that in this case the original firm will hire lobbyists and make donations to several key politicians to extend its patent for one more year. The firm is prepared to spend up to $_____ million to extend its patent.
- Suppose a profit-maximizing monopolist has total cost and marginal cost as follow TC = 8Q + 10 and MC = 8. It faces the demand curve P = 20-1/5Q. a) What is the equilibrium price and output?b) What is the total profit?c) Calculate the consumer surplus, producer surplus, and deadweight loss if the firm acts as a monopolist. Illustrate your answer with a diagramWhich of the following is most likely to be a monopoly? options: local utility company local gym local grocery store local coffee shopMatch the statements to complete a correct sentence A market structure with only one seller called Monopoly A market structure with few sellers called Oligopoly If the income elasticity of demand for bananas is 3.45, then banana's considered as Choose. The cost that is declining as output increase Choose. The quantity that consumer is willing and able to buy at a given price and time period is Quantity demanded The quantity that producer is willing and able to sell at a given price and time period is Quantity supplied The cost that remain unchanged regardless of of level of production called Choose. The time frame at which at least one input is fixed called Choose.. If the elasticity of demand is infinity, then the demand curve is Choose. If the elasticity of demand is zero, then the demand curve is Choose. The time frame at which all inputs are variables called Choose. If the cross elasticity of demand between good A and B is -2.7, then A and B are Choose.
- The accompanying graph depicts a hypothetical monopoly. Follow instuctions 1−3 below to identify the monopoly's profits. Place point E at the monopoly's profit maximizing price and quantity. Move the average total cost (ATC) curve to a position that depicts the monopoly earning a positive profit. Place the area labeled Profit in the area of the graph that represents the monopoly's profit.Jonny and Chen Brad Baxter have just made a documentary movie about their basketball team. They are thinking about making the movie available for download on the Internet, and they can act as a single-price monopolist if they choose to. Each time the movie is downloaded, their Internet service provider charges them a fee of $4. They are now arguing about which price to charge customers per download. The accompanying table shows the demand schedule for their film. Quantity of download demanded Price per download $10 8 3 4 6 2 10 15 d. They want to maximize profit. Which price would he choose? How many downloads would be sold?The diagram below shows a monopolist's marginal cost schedule and the demand curve. Find and depict the following items within the diagram and briefly explain how you found them: Price Monopoly Price Demand Marginal Revenue Total Surplus Quantity Maximising Quantity b) Draw a possible marginal cost curve for the monopolist into the diagram that is consistent with all the other curves that are already given. c) Based on the marginal cost curve that you constructed in part (b), find and highlight the monopolist's total costs at the monopoly price in the diagram. d) Briefly explain the shape of the marginal revenue curve as compared to the demand curve in the diagram.