Suppose you have been tasked with regulating a single monopoly firm that sells 50-kilogrambags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $2 perbag no matter how many bags are produced.Instructions: Enter your answers as whole numbers. In part e, round your answer to 2decimal places.If this firm kept on increasing its output level, would ATC per bag ever increase?(Click to select)Is this a decreasing-cost industry? (Click to select)If you wished to regulate this monopoly by charging the socially optimal price, what pricewould you charge? $CO per bag.At that price, what would be the size of the firm's profit or loss?At that price, the firm's (Click to select)||equals $C)million.Would the firm want to exit the industry? (Cick to select)You find out that if you set the price at $3 per bag, consumers will demand 30 million bags.How big will the firm's profit or loss be at that price? $0If consumers instead demanded 40 million bags at a price of $3 per bag, how big would thefirm's profit or loss be?At that price, the firm's (Click to select)|equals $Cmillion.Suppose that demand is perfectly inelastic at 40 million bags, so that consumers demand40 million bags no matter what the price is.What price should you charge if you want the firm to earn only a fair rate of return?Assume as always that TC includes a normal profit.$Cper bag.

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Suppose you have been tasked with regulating a single monopoly firm that sells 50-kilogram bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $2 pe bag no matter how many bags are produced. Instructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. If this firm kept on increasing its output level, would ATC per bag ever increase? (Click to select) Is this a decreasing-cost industry? (Cliok to select)| If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge? $C O per bag.

Suppose you have been tasked with regulating a single monopoly firm that sells 50-kilogram bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $2 pe bag no matter how many bags are produced. Instructions: Enter your answers as whole numbers. In part e, round your answer to 2 decimal places. If this firm kept on increasing its output level, would ATC per bag ever increase? (Click to select) Is this a decreasing-cost industry? (Cliok to select)| If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge? $C O per bag.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(Figure: Electricity generation). If this monopoly were regulated under Average Cost (AC) pricing, the output produced is Group of answer choices 2,700 GWh 3,000 GWh 0 GWh 2,000 GWh
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Problem 11-04 (algo) ou are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Analysts at your irm have determined that group 1's elasticity of demand is -5, while group 2's is -2. Your marginal cost of producing the product is 630 a. Determine your optimal markups and prices under third-degree price discrimination. Instructions: Enter your responses rounded to two decimal places. Markup for group 1: Price for group 1: $ Markup for group 2: Price for group 2 $ b. Which of the following are necessary conditions for third-degree price discrimination to enhance profits. Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box. ?At least one group has elasticity of demand greater than 1 in absolute value. ?At least one group has elasticity of demand less than one in absolute value.…
please give me correct answer with calculation otherwise i give multiple downvote and "Dont use chatGPT"
What are the main barriers to entry in the electricity supply market, and how Electricity Company got the status of Monopoly power? also,explain why a monopoly firm (Electricity Company for example) choose not to produce at its full capacity?
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Monsanto holds significant regional monopoly power-in some regions they are a true monopoly being the only seller of agriculture seeds. If the elasticities of demand, JEDI, for soybean seeds is 3.5, and 3 for corn, then the profit-maximizing price (relative to marginal cost) for soybeans is times marginal cost, and the price is times marginal cost for corn. Round to one decimal if needed. A Moving to another question will save this response. « >
Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $10 million per year and a variable cost of $6 per bag no matter how many bags are produced. Instructions: Enter your answers as a whole number. In part e, round your answer to two decimal places. a. If this firm keeps increasing its output level, will ATC per bag ever increase? No = Are there economies of scale at all levels of output? No ÷ b. If you wished to regulate this monopoly by charging the socially optimal price, what price would you charge? $ per bag At that price, the size of the firm's profit would be $ million. Will the firm want to exit the industry? No c. You find out that if you set the price at $7 per bag, consumers will demand 10 million bags. At that price, the firm's profit or loss will be $ million. d. If consumers instead demanded 20 million bags at a price of $7, how big would the firm's profit or loss be? At that price, the size…
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1) With monopoly, we only specify long run cost functions because we are not as interested in the shut down decision and we don't have firm entry to compete away profit. Still, to make the math work, our monopolist cost functions often have fixed costs. Let's solve the following question: EagleSOFT has developed a computer program that will send UNT sports teams scores directly to purchaser's phones as text messages. Demand and total cost for the software company is described by the following equations: Demand: P = 70 -0.05Q, Cost: C = 4000 + - 10Q. a) What is the firm's level of output, the price they should charge, and their profit? b) What is the demand elasticity and Lerner index at the level of output?