A monopolist faces the following average revenue
(demand) curve:
P = 100 –
0.01Q
Where Q...
A monopolist faces the following average revenue
(demand) curve:
P = 100 –
0.01Q
Where Q is weekly
production and P is price, measured in cents per unit. The firm’s
cost function is given by C = 50Q + 30,000. Assume that the firm
maximizes profits.
What is the level of production, price, and total
profit per week?
If the government decides to levy a tax of 10 cents
per unit on this product, what will be the new level of production,
price, and profit?
A monopolist faces a demand curve of the form: P = 610 – 0.01Q.
The total cost for this monopolist is TC = 2,000,000 + 10Q. Assume
there are no externalities of production or consumption of this
monopolist’s product.
a) Suppose this monopolist cannot price
discriminate. Explain why this monopolist will not
produce an output greater than 30,000 units.
b) Draw a diagram to illustrate this monopolist’s situation.
Show the demand, marginal revenue and marginal cost curves, and the...
A monopolist faces a demand curve of the form: P = 610 – 0.01Q.
The total cost for this monopolist is TC = 2,000,000 + 10Q. Assume
there are no externalities of production or consumption of this
monopolist’s product.
a) Suppose this monopolist cannot price discriminate. Explain
why this monopolist will not produce an output greater than 30,000
units.
b) Draw a diagram to illustrate this monopolist’s situation.
Show the demand, marginal revenue and marginal cost curves, and the
profit...
A monopolist faces a demand curve of Q = 164 – P, where P is
price and Q is the output produced by the monopolist. What choice
of output will maximize revenue?
Group of answer choices
70
74
82
86
if monopolist produces good X and faces a demand curve X = 112 -
2P, where P is price. What is the monopolist's marginal revenue as
a function of good X?
Group of answer choices
44 - X
56 -...
A monopolist faces a demand curve P= 11 – Q, where P is measured
in dollars per unit and Q in thousands of units. The monopolist has
a constant average cost of $6 per unit. a. Draw the average and
marginal revenue curves and the average and marginal cost curves.
What are the monopolist’s profits-maximizing price and quantity?
What is the resulting profit? Calculate the firm’s degree of market
power using the lerner index. b. A government regulatory agency
sets...
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...
A monopolist faces the demand curve P =11 Q,
where P is measured in dollars per unit and Q in thousands of
units. The monopolist has a constant average cost of $6 per
unit.
Answer the following questions, showing all workings.
a) Calculate the monopolists profit-maximizing price and quantity.
Calculate the
monopolists profit.
b) Draw the average and marginal revenue curves and the average
and
marginal cost curves for the monopolist including the area of
profits (label the diagram accurately...
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...
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.)
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.
1. A monopolist faces the following demand curve:
P = 40 - 2 Q.
His total cost curve is
TC = 50 + 4 Q + Q2.
The equilibrium quantity for this monopolist is … and the
equilibrium price is …
A. 6; $26, respectively.
B. 9, $26, respectively.
C. 9, $28, respectively.
D. 6; $28, respectively.
E. None of the above.
2. Using the information in question #1, the monopolist’s profit
is … and the Lerner...