Table 6.1: A Monopoly Price Quantity Marginal (P) (Q) Cost (MC) $10.00 $3.00 $9.00 10 $4.00 $8.00 15 $5.00 $7.00 20 $6.00 $6.00 25 $7.00 $5.00 30 $8.00 Refer to Table 6.1 for a price-maker. To maximize total economic profits, this firm will set its product's price at per unit. O $9 O $6 O $8 O $7
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- Please label your graphs axes correctly. Label all curves and shade properly Supply and Demand, show an elastic, inelastic, perfectly elastic, and perfectly inelastic Demand Price ceiling in effect and what it causes in terms of quantity and surplus or shortage, dead weight loss Perfectly Competitive firm showing profit, MC, ATC, Demand Perfectly Competitive firm in shutdown Side by side graphs, market and PC, showing the transition from losses to long-run Monopoly graph, show the following: Where demand is elastic where they maximize total revenue, Socially optimal price, productively efficient profit, Consumer surplus deadweight loss producer surplus 7. Factor Market- side by side graphs with a labor market 8. Monopolistic competition in the long-run 9. Economies of scale, diseconomies of scale 10.Trade graph, showing free trade and showing the tariff. Label and shade DWL Consumer/Producer surplus on both deadweight loss tax revenue 14. Negative externality in…Happyland is one of five amusement parks on Sunshine Island. The following graph shows Happyland's kinked demand curve (D₁ - D₂) and the resulting marginal revenue curve (MR₁ - MR₂). The graph also shows two possible marginal cost curves (MC₁ and MC₂). PRICE (Dollars per ticket) 24 22 20 18 16 14 12 10 8 6 4 2 0 0 MR₁ + + 1 2 D₁ + 3 5 7 8 9 QUANTITY (Millions of tickets per year) MR₂ 4 6 10 MC₁ MC₂ D₂ 1 11 12 (?) Assume Happyland's marginal cost is represented by MC2. Happyland will set a price of per ticket. its price, other firms will not follow suit, but if one firm its price, According to the kinked demand curve model, if one firm other firms will do likewise to retain their market share. Therefore, if one of Happyland's competitors decreases its price to below the price you just found for Happyland, Happyland will The basic principle behind the kinked demand curve model explains why the D₁ portion of the kinked demand curve is relatively D₂ portion. If Happyland's marginal cost…Refer to the table below. If the information pertains to the demand curve and the long run average cost curve for an electric company that is a natural monopoly, then what quantity will be produced in this market? Price Quantity Demanded LRAC $12 100 $6.00 $10 200 $5.50 $8 300 $5.33 $7 400 $5.50 $6 500 $6.00
- 7. Comparing monopoly and perfect competition Consider the daily market for hot dogs in a small city. Suppose that this market is in long-run competitive equilibrium, with many hot dog stands in the city, each one selling the same kind of hot dogs. Therefore, each vendor is a price taker and possesses no market power. The following graph shows the demand (D) and supply curves (S= MC) in the market for hot dogs. Place the black point (plus symbol) on the graph to indicate the market price and quantity that will result from perfect competition. PRICE AND COSTS (Dollars per hot dog) 0.5 བྷྲ ༷ ྴ་ཤཱ་བྷ་ཛྙྰ་བླླ་ཤཱ་བ། 5.0 4.5 4.0 3.5 3.0 2.5 2.0 1.0 0 0 30 60 90 Perfect Competition S=MC D 120 150 180 210 240 270 300 QUANTITY (Hot dogs) PC Outcome Assume that one of the hot dog vendors successfully lobbies the city council to obtain the exclusive right to sell hot dogs within the city limits. This firm buys up all the rest of the hot dog vendors in the city and operates as a monopoly. Assume…Table 17-4 Only two firms, ABC and MNO, sell a particular product. The following table shows the demand curve for their product. Each firm has the same constant marginal cost of $4 and zero fixed cost. Price (Dollars per unit) 14 13 12 11 11 10 9 8 7 7 6 5 5 A 4 3 2 2 1 0 Quantity Demanded Total Revenue (Dollars) 0 65 120 QUESTION 9 (Units) 0 5 10 15 20 20 25 30 35 40 45 50 55 60 65 70 165 200 200 225 240 245 240 225 200 165 120 65 0 Refer to Table 17-4. If ABC and MNO operate to jointly maximize profits and agree to share the profit equally, then how much profit will each of them earn? O a. $125.00 O b. $62.50 O c. $225.00 O d. $24.00The figure shows the demand curve faced by a monopolist. What is the price effect of a price increase from $3 to $5? OA. $800 OB. $400 OC. $1,000 OD. $200 C Price (5) 10 9 8 17 6 3 2 1 0 100 200 300 400 500 600 700 800 900 Quantity (units)
- Suppose the following table contains data of a Monopoly. Output Price (Tk.) Total Cost (Tk.) 0 14 2____________ 1 12 6____________ 2 10 8____________ 3 8 12___________ 4 6 20___________ 5 4 32___________ What is the profit maximizing quantity of this firm? What price the above firm chooses to sell its output?4 The inverse demand curve a monopoly faces is p=120−Q. The firm's cost curve is C(Q)=20+5Q. Part 2 What is the profit-maximizing solution? The profit-maximizing quantity is 57.557.5. (Round your answer to two decimal places.) The profit-maximizing price is $62.562.5. (round your answer to two decimal places.) Part 3 What is the firm's economic profit? The firm earns a profit of $enter your response here. (round your answer to two decimal places.)I need help with A and B
- In 2015, Apple introduced the Apple Watch. Assume that the cost of producing the 38mm Apple Watch Sport was $83. The price was $336. What was Apple's price/marginal cost ratio? What was its Lerner Index? If Apple is a short-run profit-maximizing monopoly, what elasticity of demand did Apple believe it faced? Part 2 Apple's price/marginal cost ratio was enter your response here.There is an unregulated firm with a natural monopoly. The table below shows quantity of goods to be produced, price, total revenue, total cost, marginal revenue, marginal cost, and average cost. Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost Average Cost 11 $18.00$18.00 $18.00$18.00 $18.00$18.00 $17.00$17.00 $17.00$17.00 22 $17.00$17.00 $34.00$34.00 $16.00$16.00 $33.00$33.00 $16.00$16.00 $16.50$16.50 33 $15.00$15.00 $45.00$45.00 $11.00$11.00 $45.00$45.00 $12.00$12.00 $15.00$15.00 44 $12.00$12.00 $48.00$48.00 $3.00$3.00 $55.00$55.00 $10.00$10.00 $13.75$13.75 55 $10.00$10.00 $50.00$50.00 $2.00$2.00 $63.00$63.00 $8.00$8.00 $12.60$12.60 66 $8.00$8.00 $48.00$48.00 −$2.00−$2.00 $70.20$70.20 $7.20$7.20 $11.70$11.70 77 $6.50$6.50 $45.50$45.50 −$2.50−$2.50 $77.00$77.00 $6.80$6.80 $11.00$11.00 88 $5.00$5.00 $40.00$40.00 −$5.50−$5.50 $84.80$84.80 $7.80$7.80 $10.60$10.60 Determine how many goods the…3. Suppose the minimum efficient scale of an industry is at 100 units of output. At this point, average cost equals 50. Inverse demand for this industry is: P(Q) = A - Q a) What range of values should A take on in order for this industry to exhibit the structure of a natural monopoly? b) At what value of A the industry in part (b) stops being a natural monopoly?