Suppose that the monopolist sells its goods for two segments of the population and the demand functions are given by Q₁ = 120P2 and Q₂ = 320P23. If the monopolist can produce at AC=MC=6 and can discriminate the prices what are the optimal prices, respectively? $9,$6 $9, $12 $12, $9 $6, $9
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- Now suppose that the monopolist chooses q to maximise its profit. The number of units that the monopolist would sell is __? The monopolist’s revenue at this profit maximising quantity would be__? The absolute value of the price elasticity of demand at this profit maximising quantity would be__?Suppose a monopolist sells a product to faculty members and students on the campus. If the firm sets a single price, the monopolist produces 5000 units and sell them at the price of $3 per unit. At this price, the price elasticity of demand for faculty member is -2.5. And the price elasticity of demand for students is -1.5. The monopolist is considering whether she should set different prices for the faculty members and students and asks for your advice. The monopolist is thinking about charging faculty members a 10% higher price. The quantity demanded by the faculty members would fall by %. The monopolist is thinking about charging students a 10% higher price. The quantity demanded by the students would fall by %. Who should the monopolist charge more? mention faculty and students and how much2) As an economist, identify and justify economic and fiscal policy measures that should be taken by the government of Oman to combat inflation and employment with the aim of reviving the economic condition of the country based on the following: a) Expansionary fiscal policy b) Contractionary fiscal policy c) Expansionary monetary policy d) Contractionary monetary policy
- Suppose a monopolist has a revenue function: R(y) = 20y Suppose further their cost of production is c(y) = 10y. Which of the following is true when the monopolist produces the optimal quantity? None of the other answers are correct Price is 10 Output is 6 O Price is 6 The cost of production is 25Each consumer has the following demand for annual visits to Planet Fitness: Q = 200 - P (or P = 200 - Q), where Q is the number of visits to Planet Fitness per year and P is the price per visit. In western Maryland, Planet Fitness has a monopoly on the gym market in the area. If the marginal cost of serving each customer is $10 per visit, what is the optimal two-part tariff that Planet Fitness could charge each customer? Annual fee = $18,050; P = $0 for each visit. Annual fee = $20,000; P = $0 for each visit. Annual fee = $18,050; P = $10 for each visit. Annual fee = $20,000; P = $10 for each visit.Consider two groups of consumers. In the first group, each consumer has the inverse demand function P = 50 – Q. In the second group, each consumer has the inverse demand function P = 30 – Q. There are 10 consumers in each group, or 20 consumers in all. Marginal cost is always zero. The monopolist wants to maximize profits by designing a two-part tariff that will apply to both groups. (1) After paying the tariff, how much consumer surplus remains to a member of Group I? Of Group II? (2) Suppose that Q is a normal good. Compare the consumer surplus remaining for a member of Group I to the surplus remaining for a member of Group II. How might two-part tariffs affect the equality of the income distribution?
- Suppose the monopolist with a marginal cost of 2 is facing two of customers i = {L, H} with the following demand functions: Customer H: qH Customer L: qL = = 6- PH 4- PL The consumer's total payment T;(q) is T;(q) = A; + piq with lump sum payment A and per unit price p. = a. Assume that the monopolist can distinguish between the two groups of consumers. Further, suppose that A₁ 0, meaning the monopolist is charging uniform prices. Find the profit maximizing price the monopolist charges customer H and the price the monopolist charges customer L. b. Assume that the monopolist can perfectly distinguish between the two groups of consumers and can utilize a lump sum payment A¡ > 0. Find the two part tariff the monopolist charges customer H and the two part tariff charged to customer L.If the demand for widgets is Qd = 90 - Pd and the supply of widgets is Q, = Ps - 30, what is the total surplus created at the equilibrium price? Also, draw the diagram and shade the appropriate area of the diagram.I need the answer as soon as possible
- A monopolist faces the demand function P= 10 - Qand the total cost function TC = %3D 2Q. Showing all your workings, calculate the maximum profit earned by the monopolist from using a two-part tariff.Suppose that the monopolist can produce with total cost: TC = goods in two different markets separated by some distance. The demand curves in the first market and the second market are given by Q = 120 - 2P, and Q2 = 240 - 2P,. Suppose that consumers can mail the product from cheaper location to a more expensive location freely (mailing cost $0). What would be the monopolist profit? 10Q. Assume that the monopolist sells its $8000 $7200 $6000 $6400NEED ASAP