6. The following table shows the demand curve facing a monopolist who produces at aconstant marginal cost of $10. Note that the demand curve is discrete, so only quantitieslisted in the table are feasible.Price1861412086420Quantity04CONDH500+12162024283236a. Calculate the firm's marginal revenue.b.Calculate the firm's profit-maximizing quantity, price, and profit.c. Calculate the equilibrium price and quantity that would prevail in a competitivemarket.

A monopoly firm produces at the intersection of MR and MC curves. A perfectly competitive firm…

The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $10. Note that the demand curve is discrete, so only quantities isted in the table are feasible.

The following table shows the demand curve facing a monopolist who produces at a constant marginal cost of $10. Note that the demand curve is discrete, so only quantities isted in the table are feasible.

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

6. The following table shows the demand curve facing a monopolist who produces at a
constant marginal cost of $10. Note that the demand curve is discrete, so only quantities
listed in the table are feasible.
Price
18
6
14
12086420
Quantity
0
4
CONDH500+
12
16
20
24
28
32
36
a. Calculate the firm's marginal revenue.
b.
Calculate the firm's profit-maximizing quantity, price, and profit.
c. Calculate the equilibrium price and quantity that would prevail in a competitive
market.

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Step 2: Calculation of marginal revenue:

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Step 3: Calculation of monopoly firm quantity, price and profit.

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Step 4: Calculation of perfectly competitive quantity, price.

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Explains it correctly
only question #4 please
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Consider the following cost and demand information for a monopolist. Demand is Qm = 34 - 1*Qm, Total Cost is TC = 20 + 2*Qm + .5*Qm2. At the profit-maximizing quantity, marginal revenue and marginal cost are equal to $........?
There are two types of consumers: one half of consumers are type 1 (low type) and the other half are type 2 (high type). Type l's demand curve is q1 = 8 – P, while type 2's demand is given by q2 = 12 – P. Consider a monopolist selling its product to these consumers. Assume that the marginal cost is equal to zero. 1.1. Suppose that the firm can charge only one price, P, for each unit. (1) What is the market demand, Q? (Note: Q should be equal to q1 + q2.) What should be P that maximizes the monopoly's profit? For the profit- (2) maximizing P, will both types of consumers purchase the product, or only high type con- sumers purchase? (3) Given the price in (2), what is the resulting social surplus?
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Answer multiple choice