Suppose that the monopolist has the demand curve P = 100 - Q. If the firm's MC curve is given by MC = Q, then what price does this perfectly (1st degree) price discriminating charge? Type your response

Suppose that the monopolist has the demand curve P = 100 - Q. If the firm's MC curve is given by MC = Q, then what price does this perfectly (1st degree) price discriminating charge? Type your response

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

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?
The monopolist faces the demand curve D(p) = 100 – 2p. Its cost function is c(y) = 2y. What is your optimal level of production and prices? Solve mathematically and graph
How can a monopolist identify the profitmaximizing level of output if it knows its marginal revenue and marginal costs?
A private school has demand for enrolling students at Q=100- 10P, where price is tuition and Q is student enrollment (for a year). Marginal cost to enroll a student is MC = 10. It effectively acts like a monopoly in setting its tuition price and quantity. The school has a pricing scheme where they set a price for tuition (P) plus a flat enrollment/registration fee. What is the profit maximizing Q, price for tuition (P), and the enrollment/registration fee? Use a graph to explain your work and show your math answers.
Suppose that the demand curve is P = 100 - Q. If the MC curve is MC = 3Q, then what price does the monopolist charge? Type your response
Suppose you are a monopolist in the market for a specific Q video game. Your demand curve is given by P = 80- - and 2 your marginal cost curve is MC = Q. Your fixed cost is $400. i) Derive the marginal revenue curve. ii) Calculate the equilibrium price and quantity. iii) What is the profit?
There is a monopolist,ConcreteMex,in the concretemarketin Mexico. The demand function is QD= 100–50p. The marginal cost of production isc=0.4. (referencing) Question 1.3 ConcreteMex claimed the high price is due to high transportation costs and persuaded the government to help cut down the costs. As a result, for every unit of concrete sold, the government subsidizes ConcreteMex 0.2dollars. What are the new profit-maximizing price and production levels for ConcreteMex? Under the subsidy policy and the new price in Question 1.3, calculate the consumer surplus, producer surplus, and deadweight loss. You do not need to consider government spending for the deadweight loss.
Consider that a monopolist produces camouflage backpacks, has fixed costs of 2000 and marginal cost of $2.00. It has a demand curve of: P=20-3Q and Marginal revenue curve is Img=20-6Qa) Calculate the volume of production that will maximize the benefits of the monopolist Img=CMgb) Calculate at what price the monopolist will sell the backpacks P=20-3Qc) Draw the monopolist's marginal revenue and demand curve.
A basketball club is the only one in its region and is therefore able to behave like a monopolist. It sells tickets to Adults (A) and Juniors (J), whose demand curves are given by:Pa = 120 — QaPj = 60 — QiAdditionally, the club's total costs are given by TC = 10Q The club hires an economist to consider its pricing strategy and receives the advice that it should charge different prices to each type of supporter. Find the prices it sets in both markets, the sales (output) in each and its overall level of profit and illustrate profit maximising outputs and prices of each consumer type on a graph (one graph for each type of consumer). Calculate consumer surplus in this case.
What are ways in which a monopolist can engage in price discrimination?
A monopolist faces the demand curve Q(P ) = 50 − P 2 . The firm can produce output with marginal costs MC(Q) = Q and no fixed costs. Hint for the following questions: if revenue is of the form R(Q) = (a − bQ)Q, then the derivative of revenue is a − 2bQ. (a) What is the profit maximizing price for the monopolist in this market? (b) What is the deadweight loss from monopoly in this market, compared to the efficient output that sets price equal to marginal cost? *Please fully explain out any math
Suppose a profit-maximizing monopolist is producing 800 units of output and is charging a price of $45.00 per unit. If the elasticity of demand for the product is - 2.50, find the marginal cost of the last unit produced. The marginal cost of the last unit produce is $. (Enter your response rounded to two decimal places.) What is the firm's percentage markup of price over marginal cost? The firm's percentage markup of price over marginal cost is percent. (Enter your response rounded to two decimal places.) Suppose that the average cost of the last unit produced is $12.00 and the firm's fixed cost is $2000. Find the firm's profit. The firm's profit is $ (Enter your response rounded to two decimal places.)