The accompanying graph depicts the marginal revenue (MR),demand (D), and marginal cost (MC) curves for a monopoly.100a. Place point P1 at the profit maximizing price and quantity95assuming that the monopolist can only charge a single price.90858075701b. What are the profits of the firm if it charges a single price?656055504540353025MC2015Suppose the monopolist able to successfully price10discriminate between two groups by charging one group $705MRand charging $35 to the other group.05 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100Quantityc. What are the firm's profits if it charges the two prices asmentioned above?$Price and Costs($)

A monopoly market refers to the form of market where a single seller and largest market share and…

The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly. 100 a. Place point P1 at the profit maximizing price and quantity 95 assuming that the monopolist can only charge a single price. 90 85 80 75 b. What are the profits of the firm if it charges a single price? 70 65 60 55 50 45 40 $ 35 30 25 20 15 Suppose the monopolist able to successfully price 10 Price and Costs($)

The accompanying graph depicts the marginal revenue (MR), demand (D), and marginal cost (MC) curves for a monopoly. 100 a. Place point P1 at the profit maximizing price and quantity 95 assuming that the monopolist can only charge a single price. 90 85 80 75 b. What are the profits of the firm if it charges a single price? 70 65 60 55 50 45 40 $ 35 30 25 20 15 Suppose the monopolist able to successfully price 10 Price and Costs($)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

The accompanying graph depicts the marginal revenue (MR),
demand (D), and marginal cost (MC) curves for a monopoly.
100
a. Place point P1 at the profit maximizing price and quantity
95
assuming that the monopolist can only charge a single price.
90
85
80
75
70
1
b. What are the profits of the firm if it charges a single price?
65
60
55
50
45
40
35
30
25
MC
20
15
Suppose the monopolist able to successfully price
10
discriminate between two groups by charging one group $70
5
MR
and charging $35 to the other group.
05 10 15 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95100
Quantity
c. What are the firm's profits if it charges the two prices as
mentioned above?
$
Price and Costs($)

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The following table (see MS Word/PDF version of Take-Home Quiz #5 handout, page 1) shows a market demand a monopolist is facing. Use the table to answer questions #4 thru #6. Average Marginal Marginal Rev. Total Economic Quantity Price Total Rev. Rev. Cost Cost Profit (Q) (P) (TR) (AR) (MR) (MC) (TC) (II) === =====%3D ====== =====3= 1 35 35 11 11 24 64 32 29 11 22 42 3 29 11 4 17 11 23 11 11 6. 120 11 7 17 -1 11 -7 11 9 99 11 -13 11 10 80 8. 11 [Extra Credit 2 pts] Fill all blanks in the Table 1 on the Quiz #5 handout. You will receive extra credit if you submit the completed table via email. Q4. If the monopolist sells 8 units of its product, how much total revenue (TR) will it receive from the sale? 40 O 87 O 104 O 112 O 164
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