יThe diagram at right shows the structure of cost and demandfacing a monopolistically competitive firm in the short run.The profit-maximizing output level is 20 units of output.(Enter your response as an integer.)The profit-maximizing price is $12. (Enter your response asan integer.)Total revenue is $240. (Enter your response as an integer.)Total cost is $280. (Enter your response as an integer.)Total profit or loss is $40. (Enter your response as aninteger and include a negative sign where appropriate.)In the long run, firms willOA. enter, shifting the demand facing the remainingfirms to the left until the firms earn an economicprofit.OB. exit, shifting the demand facing the remaining firmsto the right until the firms earn an economic profit.OC. exit, shifting the demand facing the remaining firmsto the right until the firms earn a normal profit.OD. enter, shifting the demand facing the remainingfirms to the left until the firms earn a normal profit.CPrice ($)$14$13$12$11$720MR25QuantityDMCATC

1. Profit-maximizing output level: The profit-maximizing output level is where the marginal revenue…

Answered: י The diagram at right shows 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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Please refer to th graph attached. The graph shows the Demand, Marginal Revenue, Average Total Cost, Average variable Costs and Marginal Cost curves for a monopolist. (a) What is the profit maximizing/ loss minimizing quantity of output and what is the maximum price the monopolist can charge? (b) Is this monopolist making economic profit or economic loss? How do you know? Explain please. (c) Calculate the firms profit or loss and show the economic profit/loss on the graph.
Questions: 1A) If MU Café, which is a monopolistically competitive firm, is making a positive profit in the short run, why might this profit become zero in the long run? 1B) If MU Café wants to keep the profit positive in the long run, what can it do? Provide ONE suggestion and briefly explain. 1C) What externality problem do you expect in the market for plastic bags? How does the government correct the inefficiency of the market? Explain in detail and diagram.
1 . Profit maximization and loss minimization BYOB is a monopolist in beer production and distribution in the imaginary economy of Hopsville. Suppose that BYOB cannot price discriminate; that is, it sells its beer at the same price per can to all customers. The following graph shows the marginal cost (MC), marginal revenue (MR), average total cost (ATC), and demand (D) for beer in this market. PLEASE HELP ME
(c) A discriminating monopolist is faced with the following price elasticities: e1-0.75 and What pricing policy should the monopolist adopt in the two markets? In which market will it be profitable for the monopolist to operate? Assume now that er ez 0.50, will it be advisable for the monopolist to discriminate or operate a single market? run. Briefly explain why the monopolist has no unique supply curve in the short Unlike the competitive firm, the monopoly firm can make supernormal profit in the long run. Explain why. e-1.50 i. ii. iii. iv. V.
Please provide answer in 1 hr
2 A monopoly sells its goods in the United States, where the elasticity of demand is -2, and in Japan, where the elasticity of demand is -5. Its marginal cost is $10. At what price does the monopoly sell its goods in each country if resale is impossible?
4. A monopolist is faced with the following cost and revenue curves: $ 80 70 60 50 40 30 20 10 0 -10 0 -20 100 200 300 400 FMC 500 AC AR 600 MR Quantity (a) What is the maximum-profit output?. (b) What is the maximum-profit price? (c) What is the total revenue at this price and output? (d) What is the total cost at this price and output? (e) What is the level of profit at this price and output? (f) If the monopolist were ordered to produce 300 units, what would be the market price? (g) How much profit would now be made? (h) If the monopolist were faced with the same demand, but average costs were constant $60 per unit, what output would maximise profit? (i) What would be the price now? (j) How much profit would now be made? (k) Assume now that the monopolist decides not to maximise profits, but instead sets a price of $40. How much will now be sold?.
9. Problems and Applications Q3 Johnny Rockabilly has just finished recording his latest CD. His record company can produce the CD with no fixed cost and a variable cost of $5 per CD. The company's marketing department determines that the demand for the CD is as follows: Complete the following table by computing total revenue for each quantity listed and marginal revenue for each 10,000 increase in the quantity sold. Marginal Revenue (Dollars) Price (Dollars) 24 22 20 18 16 14 Number of CDs 10,000 20,000 30,000 40,000 50,000 60,000 Total Revenue (Dollars) AAAAA Profit is maximized at a quantity of 40,000 CDs and a price of $18 This results in a profit of If you were Johnny's agent, you would advise Johnny to demand a recording fee of $700,000 from the record company.
Consumer H Consumer L Limited $50 $25 Pro $175 $100 5.Refer to the above table of consumer valuations for two versions of a software product. If the manufacturer of the software product hopes to exercise second degree price discrimination, what should be the incentive compatible prices for the Limited and Pro versions of the software? Is second degree price discrimination profit maximizing?
Q28
1. Company A is the only one that can sell a certain number of products in New York City. Firm A faces competition elsewhere in the United States. If Company A is able to price discrimination, a. Will prices in New York City be different from elsewhere? if yes or no, explain your reasons clearly. b. In this case, do you think there will be a high correlation of price movements between New York City and elsewhere? c. What do you think about the existing market structure in New York? please help with your explanation by drawing the required relevance curve.
1

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