You are a monopolist serving a single market but you have 2 different factories. The market demand for your product is: Using the procedure you used in the video, answer this question. Which comes closest to the price this monopolist charges for his/her product? Multiple Choice O о O O P= $118 P= $84 P= $92 P= $125 Q=336-2*P And the two factories have the following marginal cost functions: MCA = 22 + Q and MCB = 14 + Q

You are a monopolist serving a single market but you have 2 different factories. The market demand for your product is: Using the procedure you used in the video, answer this question. Which comes closest to the price this monopolist charges for his/her product? Multiple Choice O о O O P= $118 P= $84 P= $92 P= $125 Q=336-2*P And the two factories have the following marginal cost functions: MCA = 22 + Q and MCB = 14 + Q

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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If a monopolist with significant barriers to entry is making positive economic profit in the short run, what do we expect to happen as the market transitions to the long run? O The profit will increase since the monopolist has no competition, they can just raise the price to earn higher profits. O It will decrease as positive economic profit signals new firms to enter the market, increasing the market supply, and lowering the prevailing price. O It will increase, in the long run firms will drop out the market increasing the monopolists dominance in the marketplace. O The profit will stay the same, strong barriers to entry prevent new competition.
Show that if Pete increases production by 100 utensils he will earn more profit, assuming that Pat sticks with the quantity you found above, which is half of what would be produced if the industry were controlled by a monopoly. Next, calculate what profit each would make if Pat also cheats by producing 100 more utensils. Assuming that they both calculate that the other will "cheat" and produce at this higher amount, would either have an incentive to further overproduce? What would happen to either seller's profit by producing another 100 more units? If cheating beyond this point will drive down one's own profit, and thus is not in anyone's interest, could this point be called a "Nash" equilibrium?
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Chapter 9 - Monopoly OPEN Suppose the following are true for a monopolist market: P = 450 - 16Q MR = 450-32Q MC = 55+ 37Q ATC=55+ 18.5Q What is the profit maximizing Price and Quantity? Q* = P = S How much profit did the monopolist earn? Profit = S O E a hp * a
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Suppose that monopolist faces the following demand curve: P = 80-3Q. Monopolist operates in two plants with the following cost functions: TC, = 2q, + an output in each plant. %3D and: TC, 12qh+q%. Find the optimum %3D 9, = 12 and q, = 13 9 = 4 and 4, = 1 91 = 6 and 92 = 4 Oq = 8 and q2 = 7
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A movie monopolist sells to college students and other adults. The demand function for students is Q = 1,560 - 100P, and the demand function for other adults is Q = 1,800 - 100P. but who has cost function C(Q) = Q +0.005Q² Marginal cost is MC = 1 + 0.010, where Q=Qs+ QA- Instructions: Round your answers to 2 decimal places as needed. a. What prices will the monopolist set when she can discriminate? Pstudent = $ per ticket. Padult = $ Profit = $ b. What if demand for adults increases to = 2,000 - 100P? Q Pstudent = $ Padult = $ Profit = $ per ticket. O increases. O decreases. per ticket. c. When adult demand increases, the adult price: per ticket. does not change. O decreases. O increases. d. When adult demand increases, the student price: does not change.
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