Question

In: Economics

If a monopoly faces an inverse demand curve of p equals=390390minus−​Q, has a constant marginal and...

If a monopoly faces an inverse demand curve of p equals=390390minus−​Q, has a constant marginal and average cost of ​$30​, and can perfectly price​ discriminate, what is its​ profit? What are the consumer​ surplus, welfare, and deadweight​ loss? How would these results change if the firm were a​ single-price monopoly?

Solutions

Expert Solution

Rahul Sunny answered 2 months ago
Next > < Previous

Related Solutions

If a monopoly faces an inverse demand curve of pequals=330330minus−​Q, has a constant marginal and average...
If a monopoly faces an inverse demand curve of pequals=330330minus−​Q, has a constant marginal and average cost of ​$9090​, and can perfectly price​ discriminate, what is its​ profit? What are the consumer​ surplus, welfare, and deadweight​loss? How would these results change if the firm were a​ single-price monopoly? Profit from perfect price discrimination ​(piπ​) is ​$nothing. ​(Enter your response as a whole​ number.)
1.6 The inverse demand curve a monopoly faces is p=100-Q. The firm's cost curve is C(Q)...
1.6 The inverse demand curve a monopoly faces is p=100-Q. The firm's cost curve is C(Q) = 10 + 5Q(soMC = 5).What is the profit - maximizing solution? How does your answer change if C(Q) = 100 + 5Q? 1.10 The inverse demand curve a monopoly faces is p = 10Q^-0.5 a. What is the firm's marginal revenue curve? b. The firm's cost curve is C(Q) = 5Q. What is the profit - maximizing solution? 3.9 Consider the inverse demand...
A monopolist faces an inverse demand of P(Q) = 250−2Q and constant marginal costs. a) Calculate...
A monopolist faces an inverse demand of P(Q) = 250−2Q and constant marginal costs. a) Calculate the optimal price, quantity and total revenues, for MC = 10 and MC = 30. b) Repeat question a) under perfect competition with constant marginal costs for MC = 10 and MC = 30. c) Discuss how the marginal cost increase from 10 to 30 affects revenue in the monopoly case vs perfect competition. Relate your answer to the price elasticity of demand d)...
x A monopoly faces the demand curve P = 110 — Q and has the cost...
x A monopoly faces the demand curve P = 110 — Q and has the cost function C (Q) = 10Q + Q2. Compare the total Q, profits, producer surplus, consumer surplus and DWL compared to perfect competition for: a. single-price monopoly, b. the perfectly price-discriminating monopoly, c. and a quantity-discriminating monopoly (block pricing) by considering one possible price schedule: sell its first 25 units (Q1) at P1 = 85 and sell an additional (Q2 — Q1) = —235 units...
The inverse demand function a monopoly faces is P = 100 − Q. The firm’s cost...
The inverse demand function a monopoly faces is P = 100 − Q. The firm’s cost curve isTC(Q) = 10 + 5Q.Suppose instead that the industry is perfectly competitive. The industry demand curve and firm cost function is same as given before. (j) (4 points) What is the level of output produced? Compare it to the output of single price monopoly. (k) (4 points) What is the equilibrium price for this industry? Compare it to the price charged of single...
The inverse demand curve a monopoly faces is p = 100 - 2Q The​ firm's cost...
The inverse demand curve a monopoly faces is p = 100 - 2Q The​ firm's cost curve is C (Q) = 20 + 6Q What is the​ profit-maximizing solution? The profit-maximizing quantity is _______. (Round your answer to two decimal places.) The profit-maximizing price is $________. (Round your answer to two decimal places.) What is the firm's economic profit? The firm earns a profit of $________. (Round your answer to two decimal places.) How does your answer change if C(Q)...
Monopoly with linear inverse demand. Consider a monopolist facing a linear inverse demand curve p(q)= a-...
Monopoly with linear inverse demand. Consider a monopolist facing a linear inverse demand curve p(q)= a- bq, and cost function C(q)= F + cq, where F denotes its fixed costs and c represents the monopolist's (constant) magical cost a>c 1. Graph demand, marginal revenue and marginal cost. Label your graph carefully, including intercepts 2. Solve the profit maximizing output q^m. To do this, first write down the expression for MR=MC and solve for the optimal quantity. Next find the price...
A monopoly faces the demand curve P = 100 -.01Q, where P is price and Q...
A monopoly faces the demand curve P = 100 -.01Q, where P is price and Q is weekly production measured in cents per unit. The firm’s cost function is C = 50Q + 20,000. Assuming the firm maximizes profit,a. What is the level of production, price, and total profit per week?b. If the government decides to put a tax of 20 cents per unit ON THE BUYERS of this product, what will be the new level of production, price the...
Monopoly: Consider a monopoly firm facing a demand curve Q = 100– P. The marginal...
Monopoly: Consider a monopoly firm facing a demand curve Q = 100 – P. The marginal revenue curve is therefore MR= 100 – 2Q. This firm has fixed costs =$1000 and constant marginal cost =$20. Total costs are $1000 + $20Q and average costs are $1000/Q + $20. a. What is the firm’s profit maximizing level of output? What price does it charge to sell this amount of output? How much profit does it make? Show your work. b. Suppose...
A monopolistically competitive firm faces the inverse demand curve P = 100 – Q, and its...
A monopolistically competitive firm faces the inverse demand curve P = 100 – Q, and its marginal cost is constant at $20. The firm is in long-run equilibrium. a. Graph the firm's demand curve, marginal revenue curve, and marginal cost curve. Also, identify the profitmaximizing price and quantity on your graph. b. What is the value of the firm's fixed costs? c. What is the equation for the firm's ATC curve? d. Add the ATC curve to your graph in...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT