Micro Economics For Today
10th Edition
ISBN: 9781337613064
Author: Tucker, Irvin B.
Publisher: Cengage,
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Question
Chapter 9, Problem 14SQ
To determine
The profit maximizing price-output point of the monopolist.
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Students have asked these similar questions
Assume a monopoly firm is able to engage in perfect (or first degree) price discrimination and the
demand for the monopolist's product is given by the data in the chart. This firm will sell one unit of
output if it charges a price of $
. The firm can lower the price to $
to sell a second unit, which would result in total revenue equal to $
lower the price to $
The firm can
to sell a third unit, which would result in total revenue equal to $
to sell a fourth unit, which would
The firm can lower the price to $
result in total revenue equal to $
Price per unit
$20
16
12
8
4
0
Quantity Demanded
0
1
2345
A monopolist sells the same product at the same price into two different markets. The demand
for the product in market #1 is denoted D,(p) = 15 – p where p is the unit price. The demand
for the product in market #2 is given by D2(p) = 40 – 6p.
1. If the monopolist sets a price of $8 per unit, what is the total demand?
2. Explain why elasticity of total demand is not defined at a unit price of 20.
3
A monopolist serves a market with five potential buyers, each of whom would buy at most one piece of the monopolist’s good. Anna would be willing to pay up to £80 for it, Bob up to £90, Chloe up to £100, Dave up to £110 and Elizabeth up to £120. The monopolist’s variable cost function is given in below table.
a) Indicate in the table which price the monopolist would want to charge for each given quantity. b) Find the marginal revenue for each quantity. c) Find the monopolist’s profit maximising price under the assumption that he wants to produce anything at all. d) How large can the monopolist’s fixed costs be such that he still wants to start producing at all?
Chapter 9 Solutions
Micro Economics For Today
Ch. 9.1 - Prob. 1GECh. 9.1 - Prob. 2GECh. 9.2 - Prob. 1YTECh. 9.4 - Prob. 1YTECh. 9 - Prob. 1SQPCh. 9 - Prob. 2SQPCh. 9 - Prob. 3SQPCh. 9 - Prob. 4SQPCh. 9 - Prob. 5SQPCh. 9 - Prob. 6SQP
Ch. 9 - Prob. 7SQPCh. 9 - Prob. 8SQPCh. 9 - Prob. 9SQPCh. 9 - Prob. 10SQPCh. 9 - Prob. 11SQPCh. 9 - Prob. 12SQPCh. 9 - Prob. 13SQPCh. 9 - Prob. 1SQCh. 9 - Prob. 2SQCh. 9 - Prob. 3SQCh. 9 - Prob. 4SQCh. 9 - Prob. 5SQCh. 9 - Prob. 6SQCh. 9 - Prob. 7SQCh. 9 - Prob. 8SQCh. 9 - Prob. 9SQCh. 9 - Prob. 10SQCh. 9 - Prob. 11SQCh. 9 - Prob. 12SQCh. 9 - Prob. 13SQCh. 9 - Prob. 14SQCh. 9 - Prob. 15SQCh. 9 - Prob. 16SQCh. 9 - Prob. 17SQCh. 9 - Prob. 18SQCh. 9 - Prob. 19SQCh. 9 - Prob. 20SQ
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