A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q2. Derive...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q².

Derive the MC, ATC, and MR functions.

Derive the profit-maximizing price, quantity, and profit. Show on a graph.

What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph.

Suppose demand for apartments in Honolulu is P=6600-0.5q and supply is P=0.25q.

Derive the equilibrium price and quantity for apartments. Show on a graph. Calculate the producer and consumer surplus.

If the city of Honolulu passes a rent control, forcing a rent (or price) ceiling equal to $1800, what is the quantity supplied, quantity demanded, and the shortage? Calculate the new consumer surplus, producer surplus, and deadweight loss, and show these on your graph.

If a black market develops after the rent control, allowing landlords to charge an illegal rent, what is the highest rent that they could charge for the quantity supplied of apartments in part b? What is the new producer surplus? Comment on the effectiveness of price controls in allocating apartments to middle to lower income tenants.

Expert Solution

Rahul Sunny answered 2 years ago

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q. Derive...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q. Derive the MC, ATC, and MR functions. Derive the profit-maximizing price, quantity, and profit. Show on a graph. What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph. Suppose demand for apartments in Honolulu is P=6600-0.5q and supply is...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q^2 Derive...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q^2 Derive the MC, ATC, and MR functions. Derive the profit-maximizing price, quantity, and profit. Show on a graph. What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph. (PS- Please help with the graph! Thank you!!)

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q. a.)...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q. a.) Derive the MC, ATC, and MR functions. b.) Derive the profit-maximizing price, quantity, and profit. Show on a graph. c.) What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph.

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q^2. a.)...

A monopolist producer of a drug Zeta has demand P=180 – 0.2q and costs C=5000+30q+0.2q^2. a.) Derive the MC, ATC, and MR functions. b.) Derive the profit-maximizing price, quantity, and profit. Show on a graph. c.) What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph.

A monopolist producer of a drug has demand P=270 – 0.2q and costs C=5000+50q+0.2q.

A monopolist producer of a drug has demand P=270 – 0.2q and costs C=5000+50q+0.2q.a. Derive the MC, ATC, and MR functions.b. Derive the profit-maximizing price, quantity, and profit. Show on a graph.c. What is the price and quantity if the monopolist loses patent protection and the industry becomes perfectly competitive? What is the size of the deadweight loss in monopoly? Show the deadweight loss triangle in the graph.

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.

A monopolist has marginal costs MC = Q and home market demand P = 40 –...

A monopolist has marginal costs MC = Q and home market demand P = 40 – Q (that is the MR = 40 – 2Q). The monopolist can also sell to a foreign market at a constant price P = 16. Find and graph the quantity produced, quantity sold in the home market, quantity sold in the foreign market, and price charged in the home market. Explain why the monopolist’s profits would fall if it were to produce the same...

A monopolist has marginal costs MC=Q and a home market demand P=30-Q. The monopolist can also...

A monopolist has marginal costs MC=Q and a home market demand P=30-Q. The monopolist can also sell to a foreign market at a constant price of Pf=12. Find and graph the quantity produced, quantity sold in the home market, quantity sold in the foreign market, and price charged in the home market. Explain why the monopolist's profits would fall if it were to produce the same quantity but sell more in the home market.

A monopolist has marginal costs MC = Q and home market demand P = 40 –Q...

A monopolist has marginal costs MC = Q and home market demand P = 40 –Q (that is the MR = 40 –2Q). The monopolist can also sell to a foreign market at a constant price P = 16. Find and graph the quantity produced, quantity sold in the home market, quantity sold in the foreign market, and price charged in the home market.Explain why the monopolist’s profits wouldfall if it were to produce the same quantity but sell more...

A monopolist is facing the following demand curve P = 50 − 5Q. The monopolist has...

A monopolist is facing the following demand curve P = 50 − 5Q. The monopolist has the following marginal cost MC = 10. The monopolist knows exactly the willingness to pay of each individual consumer and charge consumers individual prices. Calculate the monopolist’s profit (assuming FC=0). (a) π=40 (b) π=80 (c) π = 160 (d) None of the above.

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