The following is information for a perfectly price discriminating monopolist.Demand: P = 87 - 0.021Q%3DMarginal cost = 10 + 0.029QCalculate the producer surplus for the monopolist at their optimal quantity.Answer:59290

Equilibrium quantity can be determined when; Price(P) = Marginal cost(MC)

The following is information for a perfectly price discriminating monopolist. Demand: P = 87 - 0.021Q Marginal cost = 10 + 0.029Q Calculate the producer surplus for the monopolist at their optimal quantity. Answer: 59290

The following is information for a perfectly price discriminating monopolist. Demand: P = 87 - 0.021Q Marginal cost = 10 + 0.029Q Calculate the producer surplus for the monopolist at their optimal quantity. Answer: 59290

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter8: Monopoly

Section: Chapter Questions

Problem 9SQ

See similar textbooks

Related questions

Q: (5) On your graph, indicate the supply curve of your firm in the short run.

A: Demand and supply In an economy there is always a demand for goods and services and the supply of g...

Q: Two firms compete as a Stackelberg duopoly. The demand they face is P = 402 - Q. The cost function f...

A: b P=402-QP=402-(Q1+Q2) =402-Q1-Q2C1=2Q1MC1=2TR1=(402-Q1-Q2)Q1 =402Q1-Q12-Q1Q2MR1=402-2Q1-Q2Now,...

Q: You are HR di. ector for a growing law firm in Tampa, Florida, which cu."ently has need of writing 3...

A: We are considering hiring four paralegals to shoulder the load; each pa alegal is a bit slower than ...

Q: A country whose National Saving is greater than its Investment will experience a Not enough informat...

A: In economics, savings refer to the income unsued. In other words, savings means income left after sp...

Q: QTFC TVC TC MC AFC AVCATC 10 4 4 4 Calculate Q when TVC = 4 Round to 2 decimal points. Do NOT includ...

A: Marginal cost is the total change in cost due to one additional unit of production . Whereas TC = ...

Q: A monopolist faces the demand curve P=120-3Q. The profit maximizing price is 90. What is the margina...

A: Given Demand curve: P=120-3Q .... (1)Profit maximizing price P=90 We have to calculate marg...

Q: In the short term, a firm cannot vary its capital and operates with K = 9. It can, however, vary th...

A: Returns to scale basically refer to the change in a firm's or industry's output as a consequence of...

Q: Suppose that two airlines are Cournot duopolists serving the Peoria-Dubuque route, and the demand cu...

A: Given as, Demand = Q = 250-2p p = 115-Q/2 TC = Total cost = 450+40q Q = Q1+Q2

Q: 1. Charging individual prices that are based on consumers' willingness to pay is A government price ...

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new que...

Q: Which of the following might place downward pressure on stock prices? Check all that apply. The unem...

A: In the stock market, the price of stocks are influenced by demand and supply of stocks as the market...

Q: 4.ALCOA does not have the monopoly power it once had. How do you suppose their barriers to entry wer...

A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific ...

Q: Consider a market in which the demand curve is P = 12 -Q and the supply curve is P = 2 + Q. Suppose ...

A: Demand curve P = 12 -Q Supply curve P = 2 + Q At equilibrium point, demand = supply => 12 -Q = 2 ...

Q: Suppose a country exports $60 million worth of goods and services, while it imports $50 million wort...

A: The term GDP means the aggregate total output produced by a country in the current year. This produc...

Q: An investment of $100,000 in safe 10-year corporate bonds yields an average of 9% per year, payable ...

Q: benefits does Uruguay enjoy by being a part of the Mercosur

A: What benefits does Uruguay enjoy by being a part of the Mercosur regional economic integration bloc?

Q: 18. Which of the following would not cause a shift in the aggregate demand (AD) curve? * O The gover...

A: Since you have asked multiple question, we will solve the first question for you. If you want any sp...

Q: b. Construct demand and supply schedules that correspond to the equations above, given that: P, = 0;...

A: First we will find the equilibrium price and quantity Equilibrium : Qd = Qs -9P + 2557 = P - 75 10P ...

Q: Question 5 If a firm earns an accounting profit of $20 million and has implicit costs of $6 million,...

Q: As more economic development occurs, A. capital accumulation decreases. B. the population growth rat...

A: economic development of events, the cycle by which straightforward, low-pay public economies are cha...

Q: A brewery produces regular beer and a lower-carbohydrate "light" beer. Steady customers of the brewe...

A: Answer -

Q: (1) For demand function Q, = a-bP and supply function Q, = dP-c, using Cramer's rule determine equil...

A: Equilibrium price and Equilibrium quantity result out from market equilibrium which state that suppl...

Q: In an open economy, a permanent beneficil suppy shock (s < 0) implies that the domestic real exchang...

A: A supply shock is an unexpected event that shifts the SRAS and could be one of two types: 1). Positi...

Q: Currently, interest rate on euro is near zero while the (Fed Funds) interest rate on dollar is about...

A: Interest rate on euro = 0 Interest rate on dollar = 2.5% The expectation for the 6-month forward r...

Q: A food manufacturer is trying to maximize profit by selling wheat-based cereal (C) and wheat bread(B...

A: C=30Wc−1.5W2c B=74WB−2W2B Wc+WB=8294The cost of Cereal is $1 and the cost of Bread is $0.5. Hence...

Q: b) The ABC electric company produces two products, refrigerators and cooking ranges. Production take...

A: Let X and Y be the total number of refrigerators and ranges to be manufactured. Maximize Z = 60X + ...

Q: Suppose individuals now believe that there will be an increase in the future expected interest rate....

A: An interest rate future is a financial derivative that allows exposure to changes in interest rates....

Q: George's Goji Farm has this short run total cost equation for goji berries, where Q is the number of...

A: The marginal cost (MC) or the incremental cost is the gain in cost that results from producing an ad...

Q: SCENA RIO 1: Assume that your family's budget is only P200 a day. Figure out with the help of your m...

A: If the family income is P200 per day, their monthly income should be around P6000. a) They can buy t...

Q: 1. Explain the considerations that can modify and individuals demand for urban transportation. Some ...

A: 1 Demand of the transportation depends on the necessity and how much the consumers are willing to de...

Q: Who currently favors John Maynard Keynes theories?

A: Answer-

Q: A farmer is considering adopting a soil conservation practice that will raise his profits next year ...

A: In order to find the present value, we discount the future cash flows with respect to the interest r...

Q: 1] The scale effect of an increase in the wage a) only impacts firm decisions in the short run b) wi...

A: Scale effect refers to cost advantages reaped by firms when the production of the firm becomes effic...

Q: What is called state enterprise and why it is important for the consumers/what are its merits?

Q: if marco is a seller of shirts and he sells a shirt for 48 dollars , which results in him having a p...

A: In a market, producer surplus refers to the amount of additional money obtained by a seller when pri...

Q: Suppose real GDP is $3,500, what of these is occuring?

A: Given, AEplanned is demand. Now, When supply is more than demand, there would be excess supply. When...

Q: 1. The cost in dollars, of producing x golf balls is given by: C(x) = 0.35x + 64 000 The average cos...

A: Answer -

Q: .) How might you try to fix various balance of payments problems? (Be sure to discuss current accoun...

A: The balance of payments is a summary of an economy's economic exchanges with the rest of the world.E...

Q: Consider the five investment alternatives described below. Which alternatives can be eliminated from...

A: Dear learner you have posted multiple questions, as per our policy we have solved only first questio...

Q: A city is planning to renovate their current facility with hi-tech computerized systems. Four plans ...

A: A benefit-cost ratio (BCR) is a pointer showing the connection between the relative costs and benefi...

Q: Pork belly strips and lettuce are complementary goods because most of the time they are enjoyed toge...

A: When two goods and complementary, they are consumed together due to which any change in the demand f...

Q: What does Adam Smith use “pins” to illustrate? Why is this important?

A: Classical school of thought believed in the automatic correction of the market, any disequilibrium i...

Q: Assume the Fed is trying to decide whether to lower the required reserve ratio to 8%. Currently, the...

A: Target Required reserve ratio = 8% Current required reserve ratio = 10% Deposit = $500

Q: Sustainable resource allocations require that net benefits today (period 1) and tomorrow (period 2) ...

A: Sustainable resource management refers to the management of resources in such a way that their sourc...

Q: What is risk selection and discuss any 2 methods chat can be used to eliminate this.

A: Risk Selection A related worry is risk selection, which occurs when insurers are incentivized to av...

Q: Course: Microeconomics - Intertemporal Consumption Given the following data: ; where p1 = 10; m1 (in...

A: For intertemporal choice problems firstly we derive the aggregate budget constraint . Budget Constra...

Q: How do you calculate private closed economy GDP?

A: A closed economy represents a market system where no trade with other countries take place.

Q: According to Karl Marx, those in charge of the state incapitalist societies make decisions that serv...

A: Karl Marx was the well-known economists due to his contribution to t he history of economics and the...

Q: Parker Hannifin of Cleveland, Ohio, manufactures CNG fuel dispensers. It needs replacement equipment...

A: Let's calculate future worth one by one and see which alternative is best:- Future worth of D:- FW(D...

Q: Lift Chart (Original) ROC Curve, AUC=0.71934472457572562 Lift Chart (Original) Random Classifier Opt...

A: Introduction Here lift curves covers will be 45%. Here we can say that it this project will cover al...

Q: How much would be in your account in 10 years after depositing $2000 now? The annual interest rate i...

A: Answer -1 According to the question, we need to calculate future value. Present value (PV) = $2000...

Question

The following is information for a perfectly price discriminating monopolist.
Demand: P = 87 - 0.021Q
%3D
Marginal cost = 10 + 0.029Q
Calculate the producer surplus for the monopolist at their optimal quantity.
Answer:
59290

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

The demand for a monopolist’s output is 5,000/(p + 3)2, where p is the price it charges. At a price of $5, the elasticity of demand for the monopolist’s output is (Hint: is it positive or negative?) Please round your answer to two decimal places, if necessary.
Suppose the monopolist is able to practice first-degree price discrimination. Demand in this monopolist's market is given by the equation Q = 100 - 5P. The marginal cost is given as: MC = 2. What is the price for the 10th unit purchased? $18 $50 $2 $20 $90
Currently a monopolist's profit maximizing output is 400 units per week and it sells output at price of $60 per unit. The total cost of the form are $10,000 per week. The firm is maximizing it's profit and it earns $40 in extra revenue from the sale of the last unit.
A monopolist sells 15 holiday greeting cards for $5.00 apiece. If the monopolist desires to sell a 16th card, then the price must be lowered to $4.90. The marginal revenue earned from selling the additional card is $
If the monopolist shown in the following figure could practice first-degree price discrimination, the producer surplus would be: Price (dollars) 50 40 30 20 10 0 $450.00 $1,200.00 $0.00 $900.00 $225.00 30 50 60 MR 100 MC Quantity
Suppose inverse demand is given by the following equation: P(Q) = 600 - 20Q Suppose further that you are a monopolist with constant marginal cost equal to 40. How much profit do you earn at the optimal price and quantity? A) 3920 B) 1120 C) 0 D) 4500
A monopolist is currently selling 400 units of output at a price of $20 per unit. The elasticity of demand is € = 2 (negative number). Would this firm wish to sell an additional unit for $19.50 if it could do so without cutting the price charged for the first 400 units sold? Would a perfect competitor ever wish to sell an additional unit at a lower price? Why or why not.
The manager of a local monopoly estimates that the elasticity of demand for its product is equal to -4. The firm’s marginal cost is 25. Express the firm’s marginal revenue as a function of its price then determine the profit-maximizing price.
If a monopolist is able to increase the amount of product she sells from 500 to 525 units by lowering the price of that product from $25 to $20, her marginal revenue is: Instructions: If you are entering a negative number include a minus sign.
Q1) Suppose that the inverse demand for a product is represented by the equation P = 50 – Q, where P is the price in Euros and Q is the annual output. Suppose that only one firm produces this product and that the marginal and average cost is €10. Calculate the profit-maximising price for this monopolist. Q2) In autumn, Erling Kagge, who lives alone on an island near the North Pole, puts 50 bags of root vegetables from his harvest into a cave just before a family of polar bears goes in to hibernate. The polar bears do not eat vegetables but would attack Kagge if he approached them. As a result, he is unable to get the vegetables out before the polar bears emerge the following spring. The vegetables spoil at the same rate no matter where he stores them. Which of the following statements best describes this behaviour? A. Kagge’s behaviour is an example of the anchoring effect in action B. Kagge’s behaviour is an example of the framing effect in action C. Kagge’s…
For a monopolist firm the demand and the total cost functions are given as Q = 20- 0.5P and TC= 4Q2-8Q+15, respectively. (8 marks) Find a) the optimum quantity and the optimum price level and the profit/loss on these levels b) at what price should the monopolist shut down? c) Show the economic profit (loss) of the firm in a graphic representation
The market demand function for Pierogi in Pittsburgh Pennsylvania has a constant elasticity of -3. More precisely the actual daily demand was estimated to be Q=34560p3, where p is the price per pound. Each pound costs c-$8 to produce. Pittsburgh is served by a local monopoly producer. Compute the monopoly's profit-maximizing price and the monopoly's profit level. Show your computations.