Please correct answer and don't used hand raiting Suppose a local cable company provides cable service to a rural community. The figureto the right illustrates the cable company's marginal cost of providing cable service alongwith the community's demand for cable TV.Assume the local cable company is a monopoly.When the company maximizes profits, consumer surplus equals $response using a real number rounded to one decimal place)(enter a numeric---Price and cost (dollars per cable subscription)Q120-110-100-MC✓90-80-70-60-50-40-30-20-10-010MRD20 30 40 50 60 70 80 90 100Quantity of cable subscriptions

Step 1:Consumer surplus is the difference between what consumers are willing to pay for a good or…

Answered: Suppose a local cable company provides…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small) Total Revenue 204 256 300 204 336 240 7 364 280 8 384 324 Suppose the local government imposes a $99 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal $60.) O A. Comcast should produce 6 units in the short run and shut down in the long run. O B. Comcast should shut down in the short run and in the long run OC. Comcast should shut down in the short run and produce 6 units in the long run OD. Comcast should produce 6 units in the short run and in the long run OE. None of the above Price 68 64 60 56 52 48 Quantity 3 4 5 6 Marginal Revenue 52 44 36 28 20 Total Cost 144 172 Marginal Cost 28 32 36 40 44 Suppose that the flat per-month tax is replaced with a tax on the firm of $16 per cable subscriber (Assume that Comcast will sell only…
C. Assume that if electricity is supplied by competitive firms, the market price is 55 and the quantity supplied is 8 (‘000 KWHs)? What is the amount of the deadweight loss to society of producing electricity by monopolist Global Gas and Electric? (It is helpful to have a graphical illustration based on the data above so you could calculate easily the DWL. )
Blue INK is the only cabel service provider in Gazipur. The diagram below depicts the price, output and costs incurred by Blue INK. Use the graph to answer the following questions: Price S=MSC A 50 35 25 MR D=MSB Quantity 100 250 350 1. What is the Total revenue generated by Blue INK at the profit maximizing level of output?[ Answer in Numerical value only.i;e. 1,2,3,4,5] 2. If the Cable Service Market turns into a Perfectly Competitive Market, what will be the total ammount of the service provided? [ Answer in Numerical value only]
2. Suppose a monopoly produces film and cameras. Consumers demand pictures, which require film and one camera. Two different types of consumers have the following demand for film, q, 100-10p and q = 80-10p. The monopoly cannot price discriminate in the market for film or the market for cameras, but it can bundle the products. The monopoly produces film at a constant marginal cost of $1 per roll. What price will the monopoly set for film and for cameras?
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In British Columbia, Canada a company named after Tim Hortons runs a monopoly on a sweet snack called Timbits! Suppose the demand for Timbits is P=90-Q and the cost function is C-Q How much would the consumer surplus, producer surplus and DWL be in case Tim Hortons a single-price monopoly? Suppose Tim Hortons could install a device in its premises that could immediately 11) predict the willingness to pay of every unsuspecting customer entering its franchise premises and charge them that corresponding amount! Additionally, suppose they could also stop resale of products, and thus become a first degree price discriminatıng monopoly. How much would the consumer surplus, producer surplus and DWL be in this case?
2. Suppose the cost function for a monopoly is given by TC =F+c.q where TC is the total cost, F is the fixed cost and q is the output of the firm. The demand function for the monopoly is given by q = A-bP where A > 0 and b > 0. Find out the profit maximizing price, quantity, and profit for the monopoly. Also find out the expression for the marginal revenue of the monopoly as well as the elasticity of demand facing the monopoly.
6. A monopoly produces two goods with the following demand functions: 100-2p1 +P2 92 = 120 + 3p1 - 5p2 (a) Write down the expression of the profit function of the firm if its total costs (TC) are giver TC = 50 + 10q1 + 2042 %3D where q and 2 are the outputs of the two goods, and pi and p2 are the prices of the good 91 (b) Use Cramer's rule to find the values of pi and p2 which maximize the monopoly's profit.
please answer in text form and in proper format answer with must explanation , calculation for each part and steps clearly
Give typing answer with explanation and conclusion Suppose that a monopolist whose marginal cost curve is MC(Q)=Q faces the demand curve P=10-2Q. What is monopolist's profit-maximizing quantity, profit-maximizing price, the total surplus (under monopoly profit maximization), also called the "monopoly market surplus," and if the monopolist can perfectly price discriminate, then deadweight loss equals...?
BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. Place the black point (plus symbol) on the graph to indicate the profit-maximizing price and quantity for BYOB. If BYOB is making a profit, use the green rectangle (triangle symbols) to shade in the area representing its profit. On the other hand, if BYOB is suffering a loss, use the purple rectangle (diamond symbols) to shade in the area representing its loss. 4.00 Esc 3.50 + PRICE (Dollars per can) 3.00 + 2.50 78°F Sunny 2.00 1.50 1.00 + MC 0.50 + F1 1 F2 Ö- @ ATC F3 0+ # F4 F5 ▬ Monopoly Outcome 0 Profit COL F6 Loss O F7 1 F8 n F9 F10 F11 F12 2 Fn Lock ( 1 6/2 Insert Prt Sc
What are the four most important ways a firm becomes a monopoly? Will a monopoly that maximizes profit also be maximizing revenue? Will it be maximizing output? Explain. Assume the graph below represents the market for a monopolist. What quantity will the monopolist produce, and what price will she charge? What will her total revenue, costs, and profit be at this production level? What will the deadweight loss for society be at this level of production? (Assume the MC curve is a straight line between the relevant points for this calculation.)

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