Suppose a uniform price monopoly has a demand curve given by p=12-q (& MR=12-2q) and total cost given by TC=2q (& MC=2) This monopolist have a learner's index of % and produce an output % smaller than competitive quantity

Suppose a uniform price monopoly has a demand curve given by p=12-q (& MR=12-2q) and total cost given by TC=2q (& MC=2) This monopolist have a learner's index of % and produce an output % smaller than competitive 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 monopoly faces an inverse demand curve of p=330-Q, has a constant marginal and average cost of $90, and can perfectly price discriminate, what is its profit? What are the consumer surplus, welfare, and deadweight loss? How would these results change if the firm were a single-price monopoly? Profit from perfect price discrimination (x) is (Enter your response as a whole number.)
A monopolist faces a demand curve given by Qd = 270 - P and faces a short run total cost function given by TC = 30 + 3q?. If the monopolist was forced by a regulator to sell its output at marginal cost, how much output would he produce?
A monopolist has the following marginal revenue function MR = 1,600 - 20Q, and marginal cost function MC = 200 + 30Q and faces the following the demand curve p 1200-10Q. And the total cost function is TC= 200Q+15Q². Q refers to the number of units produced by the monopolist. Find the profit maximizing quantity (in number of units produced) for this monopolist. The result should be an integer number, no decimals (e.g. if the result is 3.65 write 4, if the result is 3.64, write 3). = Your Answer:
DEWA is the sole supplier of electricity in Dubai. The demand for electricity is denoted by equation P = 2888 Q, and the total cost (TC) is given as TC = 400 + 40°. Find profit maximizing price and quantity as monopoly?
The Spacing Guild has a monopoly on space transport. They sell tickets(Q) for seats on starships for interstellar travel at a per-ticket price of P. Alltickets cost the same. The Marginal Cost for each seat is $14 and there are no other costs.Market demand is Q=315-2P. What is the absolute value of the elasticity of demand at the point wherethe Guild produces?
You are the manager of a monopoly, and your analysts have estimated your demand and cost functions as P = 300-2Q and C(Q) = 1,500 + 2Q2, respectively. a. What price-quantity combination maximizes your firm's profits? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units b. Calculate the maximum profits. Instructions: Round your response to the nearest penny (two decimal places). $ c. Is demand elastic, inelastic, or unit elastic at the profit - maximizing price-quantity combination? multiple choice 1 Unit elastic Elastic Inelastic d. What price- quantity combination maximizes revenue? Instructions: Round your response to the nearest penny (two decimal places). Price: $ Quantity: units e. Calculate the maximum revenues. Instructions: Round your response to the nearest penny (two decimal places). $ f. Is demand elastic, inelastic, or unit elastic at the revenue - maximizing price-quantity combination? multiple choice 2 Unit elastic Elastic…
The Buy n Large Corporation (BnL) is a monopolist in a market with the demand function:Qd = 320 − 4pBnL’s marginal cost function is:MC = 20/Q + 4and its average total cost function is:ATC = 240/Q + 20 + Q/8 (d) Suppose the government regulates BnL, so that they are forced to lower their price until social welfareis maximized. Determine the regulated price and quantity.(e) Draw a graph showing the demand curve, marginal revenue curve, and marginal cost curve. Label allaxes and curves. Mark out all intercepts, the profit-maximizing price and quantity, and the regulatedprice and quantity.(f) Determine the deadweight loss caused by BnL’s market power. Use your graph to help accomplish this
Consider a monopoly market in which the initial price is $40K, the initial quantity is 20, and the elasticity of demand is -2.5. A government program directly supplies an additional 4 units at the market price. For example, this is surplus equipment being auctioned to the highest bidder. a) Estimate MC. Thereafter assume it is constant. b) Use the initial equilibrium and the elasticity of demand to approximate the initial demand curve. c) Approximate the monopolist’s demand after the program provides 4 units. d) Estimate the new price, the new quantity provided by the monopolist, and the new quantity consumed by customers. e) Sketch the situation. f) Estimate the impact on CS, PS, GS, and SS assuming the METB is 0.25.
There is a monopoly firm that faces the demand curve: P= 100(1-.01Q) and has a constant marginal cost of production equal to $20. Find the equilibrium price and output of this firm.
The inverse demand of a monopolist is given by the expression P = 50 - 2Q and its cost function is C(Q) = Q^2 + 20Q + 20. a) Determine the profit maximising level of production, price and profits. Plot the profit maximising equilibrium b) Calculate the monopoly power of the company using the Lerner Index and the price elasticity of demand at the profit maximising equilibrium. c) What would be the increase in social welfare if the monopolist is forced to sell its product at perfect competition equilibrium price?
A monopolist seller of Irish ceramics faces the following demand function for its product: P = 62 - .25Q. The fixed cost is $20 and the average variable cost per unit is $.5. What is the profit maximizing quantity for this monopoly? The price elasticity of demand at the monopoly price is _____ Please do fast ASAP fast
Given the following information for a monopoly firm: Demand: P = 80 - 5(Q) Marginal revenue: MR = 80 - 10(Q) Marginal cost: MC = 2(Q) + 8 Average total cost at equilibrium is 30 1. At what output (Q) will this firm maximize profit? Number 2. At what price (P) will this firm maximize profit Number 3. What is the total revenue (TR) earned at this output level Number 4. What is the total cost (TC) accrued at this output Number Number 5. What profit is earned Assume this firm is to be regulated. Answer the following questions: 6. Under the Marginal Cost Pricing,what is the optimal quantity Number 7. Under the Marginal Cost Pricing,what is the optimal price Number