The accompanying graph depicts the marginal revenue(MR), demand (D), and marginal cost (MC) curves for amonopolya. Place point Pi at the profit maximizing price and quantitvyassuming that the monopolist can only charge a single price.100959085807570652 60b. What are the profits of the firm if it charges a single price?5045Suppose the monopolist able to successfully pricediscriminate between two groups by charging one group $60and charging $35 to the other group.c. What are the firm's profits if it charges the two prices asmentioned above?353025201510MR05 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100Quantity

Monopoly Market:Monopoly market is a market condition where single firm reaping largest market share…

Answered: The accompanying graph depicts the…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist's good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist's variable cost function is given in below table. Quantity Variable Costs 1 3. 4. 40 90 150 220 300 Price Marg. Revenue a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist's profit maximising price under the assumption that he wants to produce anything at all. d) How large can the monopolist's fixed costs be such that he still wants to start producing at 1. D Focus 9°C Sun
Given the following demand schedule for a monopolist in the diamond industry, assume the marginal cost of producing diamonds is constant and equal to 200 and that there are no fixed costs. Quantity 1 2 3 4 5 Price $500 400 300 200 100 Suppose that rival producers enter the market and the market becomes perfectly competitive. How large is the deadweight loss associated with monopoly in this case? Explain the excess capacity problem. (Note: I am not asking for a definition. I want an explanation of the problem.) Explain what is meant when we say that monopolistic competition is a "second-best" outcome. (Note: I am not asking for a definition. I want an explanation of the problem.)
In the figure provided, a monopolist faces a market demand represented by Q(P), where is the total quantity demanded, and P is the price of the good. The figure also displays Marginal Cost (MC), Average Total Cost (ATC), Average Variable Cost (AVC), and Marginal Revenue (MR) curves. Additionally, P* and Q* represent the short-run equilibrium price and quantity, respectively. Q DMR MC AT C Avc P(Q) Based on the graphical representation, which of the following statements is true? The monopolist realizes a profit in the short run. The monopolist faces a loss in the short run and decides to shut down. The monopolist incurs a loss in the short run but decides to continue operating.
The demand curve for a monopolist is inelastic. Why?
Graphically show a monopoly firm that currently sells 250 units of output at a price of $60/unit, where the marginal revenue of the 250th unit is $40, the marginal cost of the 250th unit is $50, and the average total cost at 250 units is $60. [Hint: Based on the information given, is the quantity you’re asked to show the profit-maximizing quantity? Think about what has to be true for profit-maximization.] Based on the graph and assuming the firm attempts to profit maximize (and succeeds), what would happen to price, quantity, MR, MC, and ATC? (rise, fall, or stay the same?)
Question 1: The following graph contains curves that are faced by a monopolist called SoftMicro. 16 MC 14 AC Im 11 10 9 MR 30 50 80 100 a) What is the profit-maximizing quantity and price for SoftMicro if it is a single-price monopoly? b) What is the monopolist's profit and consumer surplus in part (a)? Give me the letters of the shape of the surpluses. c) What is the price and quantity if the industry is perfectly competitive.
Can you help me solve this please?
Draw a graph with linear demand and marginal curves and a horizontal MC curve. Find the monopolist’s profit-maximizing price (P*) and output (Q*). Now change the demand curve by rotating it clockwise (making it steeper) through the point (Q*, P*). What is the new profit-maximizing price and quantity? Is price higher or lower? Relate your answer to the fact that a monopolist does not have a supply curve
Suppose a monopoly is producing at its profit-maximising (loss-minimizing) quantity, and the price corresponding to this quantity is below average total cost but above average variable cost. The monopoly will shut down in the short run but return to production in the long run shut down in the short run and exit the market in the long run keep producing both in the short run and in the long run keep producing in the short run but exit the market in the long run None of the above.
Suppose a profit-maximizing monopolist is producing 1100 units of output and is charging a price of $60.00 per unit. If the elasticity of demand for the product is - 3.00, 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 Lerner Index? The firm's Lerner Index is - (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 $1000. Find the firm's profit. The firm's profit is $ (Enter your response rounded to two decimal places.)
12. A monopoly firm faces a market with the demand function: P = 30 - Q. The firm has the long-run marginal cost of TC= 2Q. What is the price and output for the monopoly to achieve its maximum profit?
Below is a representation of the demand curve for diamonds. Assume DeBeers is operating as a monopoly. 1. As a monopolist, what is the total effect of a price change from $2,400 to $1,600 on revenue? Break this change into an increase and a decrease. If you were to do exercise 1 in for every marginal change in price, you would find the marginal revenue curve. The marginal revenue diagram has been provided for the next exercises, along with the marginal costs for DeBeers.

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