The table below shows demand and cost information for a natural monopoly. Use the information in the table to answer the questions below: Price in $ Quantity Total Revenue in $ Marginal Revenue in $ Marginal Cost in $ Average Total Cost in $ 200 -- 195 1 195 195 165 185 190 380 185 155 170 185 3 555 175 160 167 180 4 720 165 165 166 175 875 155 175 168 170 6. 1020 145 205 170 165 7 1155 135 245 184 8 1280 125 305 199 160 Assuming no government intervention in this market; what would be the equilibrium price? 24 If the government decided to regulate and set the price equal to average cost; the new price would be: 24 In general, this type of regulation tends to cause the monopoly output to

The table below shows demand and cost information for a natural monopoly. Use the information in the table to answer the questions below: Price in $ Quantity Total Revenue in $ Marginal Revenue in $ Marginal Cost in $ Average Total Cost in $ 200 -- 195 1 195 195 165 185 190 380 185 155 170 185 3 555 175 160 167 180 4 720 165 165 166 175 875 155 175 168 170 6. 1020 145 205 170 165 7 1155 135 245 184 8 1280 125 305 199 160 Assuming no government intervention in this market; what would be the equilibrium price? 24 If the government decided to regulate and set the price equal to average cost; the new price would be: 24 In general, this type of regulation tends to cause the monopoly output to

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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In 2015, Apple introduced the Apple Watch. Assume that the cost of producing the 38mm Apple Watch Sport was $83. The price was $336. What was Apple's price/marginal cost ratio? What was its Lerner Index? If Apple is a short-run profit-maximizing monopoly, what elasticity of demand did Apple believe it faced? Part 2 Apple's price/marginal cost ratio was enter your response here.
There is an unregulated firm with a natural monopoly. The table below shows quantity of goods to be produced, price, total revenue, total cost, marginal revenue, marginal cost, and average cost. Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost Average Cost 11 $18.00$⁢18.00 $18.00$⁢18.00 $18.00$⁢18.00 $17.00$⁢17.00 $17.00$⁢17.00 22 $17.00$⁢17.00 $34.00$⁢34.00 $16.00$⁢16.00 $33.00$⁢33.00 $16.00$⁢16.00 $16.50$⁢16.50 33 $15.00$⁢15.00 $45.00$⁢45.00 $11.00$⁢11.00 $45.00$⁢45.00 $12.00$⁢12.00 $15.00$⁢15.00 44 $12.00$⁢12.00 $48.00$⁢48.00 $3.00$⁢3.00 $55.00$⁢55.00 $10.00$⁢10.00 $13.75$⁢13.75 55 $10.00$⁢10.00 $50.00$⁢50.00 $2.00$⁢2.00 $63.00$⁢63.00 $8.00$⁢8.00 $12.60$⁢12.60 66 $8.00$⁢8.00 $48.00$⁢48.00 −$2.00−$⁢2.00 $70.20$⁢70.20 $7.20$⁢7.20 $11.70$⁢11.70 77 $6.50$⁢6.50 $45.50$⁢45.50 −$2.50−$⁢2.50 $77.00$⁢77.00 $6.80$⁢6.80 $11.00$⁢11.00 88 $5.00$⁢5.00 $40.00$⁢40.00 −$5.50−$⁢5.50 $84.80$⁢84.80 $7.80$⁢7.80 $10.60$⁢10.60 Determine how many goods the…
Refer to the graph below: Price and cost (dollars) 0 $ MR MC ATC AVC D 20 40 60 80 100 120 140 160 Quantity The figure shows the demand and cost curves facing a monopoly in the short run. The profit-maximizing level of output is...
18
Use the following information to answer questions 1 through 4: The table below shows data for the production of Apples for an individual firm operating as a monopoly. 0 10 20 30 40 50 60 70 80 Quantity of Apples Price Total Costs 600 3000 550 3750 500 4750 450 6000 400 8500 350 12500 300 20000 250 32000 200 43500 Monopoly Problem Set¹ 1. Given this data, complete the table: Profit Quantity of Apple Price 0 10 20 30 40 50 Total TC Revenue (TR) Marginal Revenue (MR) Marginal Costs (MC) 2. At what quantity are marginal revenues equal to marginal costs?
In the attached graph is a depiction of a monopoly. At what output should he or she produce? What price should they charge for the product? Is the firm making profits or losses?
The graph shown represents the cost and revenue curves faced by a monopoly. 22 P3 P2 P1 PO MC ATC Q1 Q2 MR Which of the following statements is true? 1. The outcome in a monopoly market would be Q1, P1. II. The outcome in a perfectly competitive market would be Q2, P2. III. The efficient outcome is Q2, P2. Multiple Choice I and II only ○ I only II and Ill only I, II, and III b
Not image answer please.
11. In a particular industry the minimum value of long run average cost is reached when a firm produces 1,000 units of output per period. At this output rate, long run average cost is $ı per unit of output. The market demand curve for this product is as follows: Price Quantity $3.00 1,000 8,000 12,000 20,000 2.00 1.00 .50 Is this industry a natural monopoly? Why or why not?
There is an unregulated firm with a natural monopoly. The table below shows quantity of goods to be produced, price, total revenue, total cost, marginal revenue, marginal cost, and average cost. Quantity Price Total Revenue Marginal Revenue Total Cost Marginal Cost Average Cost 11 $15.00$⁢15.00 $15.00$⁢15.00 $15.00$⁢15.00 $14.00$⁢14.00 $14.00$⁢14.00 22 $14.00$⁢14.00 $28.00$⁢28.00 $13.00$⁢13.00 $26.00$⁢26.00 $12.00$⁢12.00 $13.00$⁢13.00 33 $13.00$⁢13.00 $39.00$⁢39.00 $11.00$⁢11.00 $36.00$⁢36.00 $10.00$⁢10.00 $12.00$⁢12.00 44 $12.00$⁢12.00 $48.00$⁢48.00 $9.00$⁢9.00 $44.00$⁢44.00 $8.00$⁢8.00 $11.00$⁢11.00 55 $10.20$⁢10.20 $51.00$⁢51.00 $3.00$⁢3.00 $47.00$⁢47.00 $3.00$⁢3.00 $9.40$⁢9.40 66 $8.90$⁢8.90 $53.40$⁢53.40 $2.40$⁢2.40 $51.00$⁢51.00 $4.00$⁢4.00 $8.50$⁢8.50 77 $7.00$⁢7.00 $49.00$⁢49.00 −$4.40−$⁢4.40 $56.00$⁢56.00 $5.00$⁢5.00 $8.00$⁢8.00 88 $5.40$⁢5.40 $43.20$⁢43.20 −$5.80−$⁢5.80 $62.00$⁢62.00 $6.00$⁢6.00 $7.75$⁢7.75 Determine how many goods the firm will…