Suppose a monopolist faces the demand curve P = 120 - 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true?The monopolist sells 30 units at a profit of 1800.The monopolist sells 17 units at a profit of 1460.The monopolist sells 30 units at a profit of 900.The monopolist sells 17 units at a profit of 730.

Price discrimination is a practice of charging different prices from different consumers for the…

Suppose a monopolist faces the demand curve P = 120 - 20, has marginal cost curve MC = 20, and zero fixed costs. If the monopolist can perfectly price discriminate, which The monopolist sells 30 units at a profit of 1800. The monopolist sells 17 units at a profit of 1460. The monopolist sells 30 units at a profit of 900.

Suppose a monopolist faces the demand curve P = 120 - 20, has marginal cost curve MC = 20, and zero fixed costs. If the monopolist can perfectly price discriminate, which The monopolist sells 30 units at a profit of 1800. The monopolist sells 17 units at a profit of 1460. The monopolist sells 30 units at a profit of 900.

Micro Economics For Today

10th Edition

ISBN:9781337613064

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter9: Monopoly

Section: Chapter Questions

Problem 5SQ

See similar textbooks

Similar questions

A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist’s good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist’s variable cost function is given in below table. a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist’s profit maximising price under the assumption that he wants to produce anything at all. d) How large can the monopolist’s fixed costs be such that he still wants to start producing at all?
The table below shows a monopolist's demand curve and the cost information for the production of its good. If the monopolist is trying to maximize its profit what would it be? Quantity Price per Unit Total Cost 10 $100 $100 20 $80 $400 30 $60 $800 40 $40 $1,400 50 $20 $2,400 Question 40 options: a) $1,200 b) $1,000 c) $1,600 d) $1, 800
Acme is a monopolist for a good with inverse demand P = 4000 – 6Q, where P is the price in dollars and Q is the amount sold. Acme's variable costs are TVC(Q) = 4Q². With these functions, the marginal revenue is MR(Q) = 4000 – 12Q and marginal cost is MC(Q) = 8Q. a) If Acme has no fixed costs, what is its profit maximizing price? b) If Acme has non-sunk fixed costs of $700,000, is it worth operating or should they shut down?
Question 33 Suppose a monopolist faces the demand curve P = 200 – 2Q, has marginal cost curve MC = 2Q, and zero fixed costs. If the monopolist can perfectly price discriminate, which of the following is true? The monopolist sells 33 units at a profit of 3300. The monopolist sells 33 units at a profit of 1650. The monopolist sells 50 units at a profit of 5000. The monopolist sells 50 units at a profit of 2500.
Consider a monopolist facing a demand curve of P = 600 – 5q and with a constant marginal cost of MC = $30 per unit. Suppose the monopolist started off by setting price and quantity using the MR = MC method. Later, the monopolist engaged in first degree price discrimination. What is the change in quantity?
A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are: P1=20−Q1 MR1=20−2Q1 P2=30−2Q2 MR2=30−4Q2 The monopolist's total cost is C=5+5(Q1+Q2). What are price, output, profits, marginal revenues, and deadweight loss if the monopolist can price discriminate? (round all answers to two decimal places) In market 1, the price is $12.50 and the quantity is 7.50 In market 2, the price is $17.50and the quantity is 6.25 The monopolist's profit is $_____.
A monopolist is deciding how to allocate output between two geographically separated markets (East Coast and Midwest). Demand and marginal revenue for the two markets are: P1=20−Q1 MR1=20−2Q1 P2=30−2Q2 MR2=30−4Q2 The monopolist's total cost is C=5+5(Q1+Q2). What are price, output, profits, marginal revenues, and deadweight loss if the monopolist can price discriminate? (round all answers to two decimal places) In market 1, the price is $_____ and the quantity is _____ In market 2, the price is $______and the quantity is______
Consider the diagram below: a) If a firm is single –price monopolist, what price firm will charge and what is the profit maximizing output? Calculate the area of monopolist’s profit (in tk), consumer surplus (in tk) and deadweight loss (in tk) from the information of the diagram. b) If the firm would work as a perfectly price discriminating monopolist, what amount of output firm would have produced? How firm would have charged price? Calculate the area of consumer surplus (in tk), profit(in tk) and deadweight loss (in tk) from the information of the diagram. Don,t copy from anywhere. Answer must be correct.Do all answer.
Suppose a nonlinear price discriminating monopolist faces an inverse demand curve: P = 110-Q, and can set three prices depending on the quantity a consumer purchases. The firm's profit is: π = P₁ Q₁ + P₂ (Q₂ −Q₁) + P3 (Q3 − Q₂) - mQ3, where p₁ is the high price charged on the first units Q₁ (first block) and P2 is a lower price charged on the next (Q₂ -Q₁) units and p3 is the lowest price charged on the (Q3 - Q₂) remaining units. Q3 is the total number of units actually purchased, and m = 75 is the firm's constant marginal and average cost. Using calculus, determine the profit-maximizing values for P₁, P2, and p3, and the firm's profits. The profit-maximizing value for (round your answers to the nearest penny) P₁ P₂ = $ P3 = $ The firm's profit is $ 9 and
Suppose a monopolist faces a market demand that is the first two columns in the table below. Also, in the short run, assume that Total Fixed Cost equals $100 and the monopolist has Total Variable Cost according to the table. Find Total Revenue for each price and quantity combination, and then Marginal Revenue as price falls and quantity increases. Fill in the rest of the costs in the table and find profit at each price and quantity combination as the difference between Total Revenue and Total Cost. If profit is less than zero that indicates a loss. What is the maximum profit you found in this table? At what quantity and price combination is profit maximized for this monopolist? Next, verify this result by using Marginal Analysis to find the profit maximizing price and quantity combination. For each quantity, ask yourself if Marginal Revenue exceeds Marginal Cost. If it does, then profits would be increased by producing that quantity. As you go down the table to higher quantities, stop…
Suppose a monopolist faces a market demand that is the first two columns in the table below. Also, in the short run, assume that Total Fixed Cost equals $100 and the monopolist has Total Variable Cost according to the table. Find Total Revenue for each price and quantity combination, and then Marginal Revenue as price falls and quantity increases. Fill in the rest of the costs in the table and find profit at each price and quantity combination as the difference between Total Revenue and Total Cost. If profit is less than zero that indicates a loss. What is the maximum profit you found in this table? At what quantity and price combination is profit maximized for this monopolist?
Suppose a monopolist faces a market demand that is the first two columns in the table below. Also, in the short run, assume that Total Fixed Cost equals $100 and the monopolist has Total Variable Cost according to the table. Find Total Revenue for each price and quantity combination, and then Marginal Revenue as price falls and quantity increases. Fill in the rest of the costs in the table and find profit at each price and quantity combination as the difference between Total Revenue and Total Cost.