A monopolist faces a market demand curve given by QD= 100 – P/3 and has a...

A monopolist faces a market demand curve given by Q^D= 100 – P/3 and has a cost function described by C = 30Q +1.5Q². Solve for the monopolist’s profit maximizing output and price.
With reference to question 4 above, suppose the demand facing the monopolist increases to Q^D= 120 – P/2. Solve for the new profit maximizing values of price and quantity. Describe how the two answers differ and explain those differences in terms of the demand change.
The market for coats is perfectly competitive with market supply given by Q^S= 2500 + 40P and market demand given by Q^D given by Q^D= 7500 – 10P. Solve for the equilibrium values of price and quantity. Calculate the values of elasticity of demand and elasticity of supply at the equilibrium.

Expert Solution

Rahul Sunny answered 8 months ago

A monopolist faces a market demand curve of q=100-p. The monopolist’s cost function is given by...

A monopolist faces a market demand curve of q=100-p. The monopolist’s cost function is given by (q) = 3000 + 20q. a) If the monopolist can perfectly price discriminate, how many units will be sold? b) If the monopolist can perfectly price discriminate, how much consumer surplus will there be? c) If the monopolist cannot price discriminate, how much consumer surplus will there be? (For this question, think long run.)

Assume that a monopolist faces a demand curve given by: Q = 100 – P Also...

Assume that a monopolist faces a demand curve given by: Q = 100 – P Also assume that marginal costs are such that MC = 2Q. Calculate and graph the following: Find the profit maximizing price and output in this market under autarky. Now assume that the world price under free trade is $20 per unit. If the monopolist is a single price monopolist then find the profit maximizing output for this firm. Also find the amount imported under free...

Assume a monopolist faces a market demand curve P = 190 - 3Q and has the...

Assume a monopolist faces a market demand curve P = 190 - 3Q and has the short-run total cost function C = 540 + 10Q. What is the profit-maximizing level of output? What are profits? Graph the marginal revenue, marginal cost, and demand curves, and show the area that represents deadweight loss on the graph. (Hint: derive the MR and MC functions and set MC=MR and solve). In Question 3 above, what would price and output be if the firm...

Given the demand curve for a monopolist: Qd= 60 -2 P and the marginal revenue curve:...

Given the demand curve for a monopolist: Qd= 60 -2 P and the marginal revenue curve: MR = 30 -Q. Marginal cost equals average cost at $14. What is the price and quantity that the profit-maximizing monopolist will produce? Graph these curves andlabel theequilibrium points. b) Ifthis were a competitive industry, what price and quantity would be produced? Show this on the above graphand show your work (answers) below. c) What is the monopolist's profit? What is the consumer surplus...

A monopolist faces a single market with the following demand curve and total cost P =...

A monopolist faces a single market with the following demand curve and total cost P = 180 – 2.5Q and TC = 2Q2 i. Determine the quantity of output that it should produce and the price it should charge to maximize profit. Then, calculate the profit.

A monopolist faces a market demand curve given by P(y)=100-y. Its cost function is C(y)=y2+20. a)...

A monopolist faces a market demand curve given by P(y)=100-y. Its cost function is C(y)=y2+20. a) Find its profit-maximizing output level and market price. b) Calculate its total revenue, total cost and profit at that output. c) Calculate CS, PS and DWL? d) What is the efficient amount of output? e) Plot the graph for this monopolist indicating P(y), MR, MC, y*, p(y*), CS, PS, and DWL.

A monopolist faces a demand curve of P = 120 – Q, and has costs of...

A monopolist faces a demand curve of P = 120 – Q, and has costs of C = 50 + 20Q. The monopolist sets a uniform price to maximize profits. Group of answer choices a) All of the answers are correct. b)The profit-maximizing price is 70. c)Deadweight loss is 1250. d) Producer surplus is 2500.

Suppose the demand curve for a monopolist is QD = 47,000 - 50 P, and the...

Suppose the demand curve for a monopolist is QD = 47,000 - 50 P, and the marginal revenue function is MR = 940 - 0.04Q. The monopolist's Marginal Cost = 40 + 0.02Q and its Total Cost = 250,000 + 40Q + 0.01Q2. a. Find the monopolist's profit-maximizing output and price. b. calculate the monopolist's profit/losses, if any. c. What is the Lerner Index for this industry at the monopolist's profit-maximizing output and price

Assume a monopolist faces a market demand curve P= 200 -4Q and has the short-run total...

Assume a monopolist faces a market demand curve P= 200 -4Q and has the short-run total cost function C= 480 + 40Q. What are the profit-maximizing price, quantity and profits? Graph the marginal revenue, marginal cost, and demand curves, and show the area that represents deadweight loss on the graph.

Suppose a monopolist faces a market demand curve Q = 50 - p. If marginal cost...

Suppose a monopolist faces a market demand curve Q = 50 - p. If marginal cost is constant and equal to zero, what is the magnitude of the welfare loss? If marginal cost increases to MC = 10, does welfare loss increase or decrease? Use a graph to explain your answer

Question