The figure on the right shows the demand schedule for a productproduced by a single-price monopolist.Price ($)10987654QuantitydemandedA. 9; 10; -1B. 40; 45; 5C. 36; 41; 5D. 5; 4; 1E. 15; 15; 0456789210Using the graph on the right, suppose this single-price monopolistis initially selling 4 units at $10 each and then reduces the price ofthe product to $9. By making this change, the firm is giving uprevenue ofItsand gaining revenue ofmarginal revenue is therefore(All figures are dollars.)Price ($)14113-12-11-10-9-6-5-4-3-2-1--N4 5 6 7 8 9 10 11 12 13 14 15 16QuantityQQ

Correct option:B.40,45,5Pls, refer the below explanation: Explanation:Let's solve the problem step…

Answered: The figure on the 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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Elixir Springs, Inc., is an unregulated European natural monopoly that bottles Elixir, a unique health product with no substitutes. The total fixed cost incurred by Elixir Springs is €150,000,€150,000, and its marginal cost is 10 cents a bottle. The figure illustrates the demand for Elixir.a What is the price of a bottle of Elixir?b How many bottles does Elixir Springs sell?c Does Elixir Springs maximize total surplus or producer surplus?
Question 4.3 (a) A monopolist faces the demand curve: Q = 1000 – 20P. What is the exact value of the price elasticity of demand when the price $20 and $30 respectively (hint: refer to each of the stated price level only)? At the two stated price level, how should the monopolists change the output level to maximize profit?
Question 2: Suppose a monopoly firm produces bicycles and can sell 10 bicycles per month at a price of $700 per bicycle. In order to increase sales by one bicycle per month, the monopolist must lower the price of its bicycles by $100 to $600 per bicycle. What is the marginal revenue of the eleventh bicycle?
Title Suppose there are two classes of buyers in a market served by a monopolist. Description Suppose there are two classes of buyers in a market served by a monopolist. At this point the two classes are lumped together and the monopolist is currently producing the profit maximizing quantity based upon being a single price monopolist. Suppose that the monopolist perceives that its relevant market demand curve is given by the equation P = (40/3) – (2/3)Q and its MC = ATC = 4. a. Suppose this monopolist acts as a single price monopolist. Calculate the monopolist’s price, quantity, and profit given the above information. Now, suppose that the monopolist realizes that the two classes of buyers have different demand curves and that the first class of buyers demand curve is given by the equation P = 10 – Q while the second class of buyers demand curve is given by the equation P = 20 – 2Q. Assume for the rest of this problem that this monopolist will practice third degree price…
Following information shows that a firm offering a good at different prices to groups of consumers with different levels of willingness to pay. Inverse Demand for movies: P1 = 20 – 4Q1 Inverse Demand for students: P2 = 10 – Q2 MC = 4Q LKR /ticket (a) What price and quantity and maximizes profits if the firm charges each market? (b) Demonstrate that charging different prices for the two groups results in higher profits than charging the same price for everyone. (c) Graph the demand curves, the marginal revenue curves, the marginal cost curve and highlight the equilibrium.
Exercise A.9 You are an executive of Super Computer, INC. (SC), which rents supercomputers. SC receives a fixed rent for a period of time in exchange for the right use unlimited computers equal to P cents per second. SC has two types of potential clients of equal numbers: 10 companies and 10 academic institutions. Each company has the demand function Q = 10 - P, where Q is expressed in millions of seconds per month; each academic institution has the demand Q = 8 - P. The marginal cost to SC of additional computer utilization is 2 cents per second, regardless of volume. a) Suppose you can distinguish companies from academic clients. What rental and usage fee would you charge each group? Calculate the profits you would get? b) Suppose that you cannot separate the two types of customers and that you did not charge a rental fee. What usage quota would maximize your profits? How many benefits would you get?
Jonny and Chen Brad Baxter have just made a documentary movie about their basketball team. They are thinking about making the movie available for download on the Internet, and they can act as a single-price monopolist if they choose to. Each time the movie is downloaded, their Internet service provider charges them a fee of $4. They are now arguing about which price to charge customers per download. The accompanying table shows the demand schedule for their film. Quantity of download demanded Price per download $10 8 3 4 6 2 10 15 d. They want to maximize profit. Which price would he choose? How many downloads would be sold?
Suppose that Comcast has a cable monopoly in Philadelphia. The following table gives Comcast's demand and costs per month for subscriptions to basic cable (for simplicity, we keep the number of subscribers artificially small). Total Marginal Total Marginal Price Quantity 3 Revenue Revenue Cost Cost 68 204 144 64 4 256 52 172 28 60 300 44 204 32 56 336 36 240 36 52 7 364 28 280 40 48 384 20 324 44 Suppose the local government imposes a $99 per month tax on cable companies. What will Comcast do? (Assume fixed costs equal $60.) A. Comcast should produce 6 units in the short run and shut down in the long run. B. Comcast should shut down in the short run and in the long run. c. Comcast should produce 6 units in the short run and in the long run. D. Comcast should shut down in the short run and produce 6 units in the long run. E. None of the above. Suppose that the flat per-month tax is replaced with a tax on the firm of $4 per cable subscriber. (Assume that Comcast will sell only the…
Answer everything in the photo please.
Now assume that the bottled water market is a monopoly because of even more mergers. Illustrate graphically the monopolist’s: profit, quantity, price and deadweight loss. If the monopolist can perfectly price discriminate, what happens to your answers? Given this, is price discrimination a good or bad thing for a monopolist to pursue? (please help with the graph!!)
5
Problem 2 Elixir Springs is a natural monopoly that bottles Elixir, a unique health product with no substitutes. The total fixed cost incurred by Elixir Springs is $150,000, and its marginal cost is 10 cents a bottle. The figure illustrates the demand for Elixir. a) What is the price of a bottle of Elixir and how many bottles does Elixir Springs sell? b) Does Elixir Springs maximize total surplus or producer surplus? Figure 1 Elixir Springs 50 40 30 20 ATC 10 MC MR 0.5 1.0 1.5 2.0 2.5 Quantity (millions of bottles/year) Price (cents per bottle)

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