The monopolist has constant marginal and average cost AC=MC=70 and faces the market demand P-120-Q. Suppose the monopolist can perfectly price discriminate by setting a two-part tariff: that is, the monopolist charges the consumer a fixed fee Fand a per unit price . What are the optimal values of Fand p that the monopolist sets? O F-$2500, p-$70 O F-$3500. p-$70 O F-$2375, p-$95 O F-$1250, p-$70 OF-$2975, p-$85

The monopolist has constant marginal and average cost AC=MC=70 and faces the market demand P-120-Q. Suppose the monopolist can perfectly price discriminate by setting a two-part tariff: that is, the monopolist charges the consumer a fixed fee Fand a per unit price . What are the optimal values of Fand p that the monopolist sets? O F-$2500, p-$70 O F-$3500. p-$70 O F-$2375, p-$95 O F-$1250, p-$70 OF-$2975, p-$85

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

A monopolist produces at a constant $5 marginal and average cost. The demand the monopolist faces is shown below: $15 $10 $7.50 $5 MC = AC = $5 D 20 30 40 60 Quantity If the monopolist sells all units at the same price to all customers, she will earn profits of $ But if she perfectly price discriminates, she will | in profits. earn Price
A monopolist sells its product in two di§erent countries. The demand in country 1 is Q1 = 50-0.5P1, whereas the demand in country 2 is Q2 = 25-0.25P2. The firm's cost function is C(Q)=10+0.5Q2, where Q = Q1 + Q2.a) Calculate the amount of the product that the profit maximizing monopolist should sell in each country. Q1*=?, Q2*=?b) The determinantal test suggests that the firm's profit function (which one is correct) is locally concave around the critical point, but not elsewhere is globally concave is locally convex around the critical point, but not elsewhere is globally convex has a saddle point at the critical point
Price and costs (dollars per unit) 10 8 4 2 0 2 V MR MC 6 8 ATC D 10 12
The demand function for a monopolist is given by x =100 – 4p, where x is the number of units of product produced and sold and p is the price per unit. Find : (1) total revenue function (ii) average revenue function (ii) marginal revenue func- tion and (iv) price and quantity at which MR = 0. 7. A firm knows that the demand function for one of its products is linear. It also knows that it can sell 1000 units when the price is Rs.4 per unit and it can sell 1500 units when the price is Rs.2 per unit. Determine : (i) the demand function (ii) the total revenue function (iii) the average revenue function (iv) the marginal revenue function. 6.
Suppose an airline sells air tickets to two types of customer – business travelersand vacation travelers. Their estimated demand elasticities are -2.5 and -4.0respectively.Suppose the marginal cost is constant at $240, and the services provided to thetwo types of customer are similar. Calculate the fares the airline should charge on the air tickets sold to therespective types of customers. Show your calculations.
Suppose the table below describes the relationship between price and quantity demanded for a monopolist. Quantity 1 2 3 4 5 6 7 8 O If the marginal cost of producing each unit of output is $5, then this monopolist maximizes its profit by charging __________ per unit. O $8 $5 $3 Price $10 $9 $8 $7 $6 $5 $4 $3 $6
Please ASAP
A monopolist faces the demand curve illustrated below. 12 9 -1 -2 12 13 11 15 15 1 1s 19 20 21 22 23 24 Suppose the monopolist faces a marginal cost of $5, and that there are no fixed costs. Thus, the marginal cost is equal to the average total cost in this case. Given this, what is the monopolist's profit maximizing price if it is not able to price discriminate O $5 O $8.33 O $2 O $10 $7.50 N O087654321
Q53
When consumers are maximizing their utility, they have to consider choosing the optimal combination of goods to buy. All of these O Their indifference curves The prices of each good Their income when
Pls solve sub questions 1, 2 and 3 only
Suppose that a monopolist supplies a product in two distinct markets, LA and SF. The demand functions for thetwo markets are PLA = 52 – 4QLA and PSF = 70 – 7QSF. The monopolist has a fixed cost of $20 and a constantmarginal cost of $10 per unit.a. If segmenting is feasible, what are the profit-maximizing prices, quantities, and maximized profit?b. If segmenting is NOT feasible, what is the profit-maximizing price, quantity, and maximized profit?c. How much is the difference in total consumer surplus in the two cases? Which case makes consumers better off?