Question
In: Economics
2 a.) Draw the demand, marginal revenue and marginal cost curve for a monopolist. Show the...
2
a.) Draw the demand, marginal revenue and marginal cost curve for a monopolist. Show the equilibrium price and quantity supplied and total profit. Show the equilibrium price and quantity supplied and total profit.
b.) Suppose new policy suggest the government can imposed a tax on monopolists equal to 25 percent of their economic profits, how this affect the output level of the firm? How about the price? Explain.
Solutions
Rahul Sunny answered 2 years agoRelated Solutions
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its
product:
Q = 200 - 2P MR = 100 - Q TC = 5Q MC = 5
a) suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing level of
output?
b) suppose that a tax of $5 for each unit produced is imposed by
state government. What is the price...
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its product: Q
= 200 ; MR = 100-Q ; TC = 5Q ; MC = 5
a) Suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing level of
output?
b) Suppose that a tax of $5 for each unit produced is imposed by
state government. What is the profit maximizing...
A monopolist faces the following demand curve, marginal revenue, total cost curve and marginal cost curve...
A monopolist faces the following demand curve, marginal revenue,
total cost curve and marginal cost curve for its product: Q = 200 -
2P ; MR = 100 - Q ; TC = 5Q ; MC = 5
a) What level of output maximizes total revenue?. b) What is the
profit maximizing level of output?. c) What is the profit
maximizing price?. d) How much profit does the monopolist earn? e)
Suppose that a tax of $5 for each unit...
A monopolist faces the following demand curve, marginal revenue curve, total cost curve and marginal cost...
A monopolist faces the following demand curve, marginal revenue
curve, total cost curve and marginal cost curve for its product: Q
= 200 - 2P MR = 100 - Q TC = 5Q MC = 5 a. What is the profit
maximizing level of output? (10 pts.) b. What is the profit
maximizing price? (8 pts.) c. How much profit does the monopolist
earn? (10 pts.)Immersive Reader (28 Points)
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...
Problem 1: A monopolist faces the following demand curve, marginal revenue curve, total cost curve and...
Problem 1: A monopolist faces the following demand curve,
marginal revenue curve, total cost curve and marginal cost curve
for its product: Market demand function: Q = 200 - 2P (direct form,
which shows Q as a function of P) Market demand function in the
indirect form: P = 100 – 0.5Q (indirect form because it shows P as
a function of Q). Marginal revenue function: MR = 100 – Q (Notice
that the slope of the MR function is...
Scenario A: A monopolist faces the following demand curve, marginal revenue curve, total cost curve for its product:
Scenario A: A monopolist faces the following demand curve,
marginal revenue curve, total cost curve for its product:Q=3500-5pMR= 250-QTC=15QMC=100What level of output maximizes total revenue?What is the profit maximizing level of output?What is profit maximizing price?How much profit does the monopolist earn?Suppose that a tax of $10 for each unit produced is imposed by
state government. What is the profit maximizing level of
output.
If a monopolist faces a linear demand curve, its marginal revenue curve will cross the quantity...
If a monopolist faces a linear demand curve, its marginal
revenue curve will cross the quantity axis at the quantity related
to:
a. MR=MC
b. the point of unit elasticity on demand curve
c. the minimum of average total cost
d. the profit maximizing price
In using the graph for a monopolist, with demand, marginal revenue, marginal cost, and average total...
In using the graph for a monopolist, with demand, marginal
revenue, marginal cost, and average total cost curves, explain how
you find the profit maximizing level of output. (Note that this
question asks about OUTPUT. The next question asks about
PRICE.)
Profits are maximized at the quatnity where total revenue is
highest above total cost
Profits are maximized at the quantity where ATC hits its
minimum
Profits are maximized at the quantity where marginal revenue
equals marginal cost
Profits are...
1. a. Draw a horizontal average cost curve for the monopolist. Where is the marginal cost...
1.
a. Draw a horizontal average cost curve for the monopolist.
Where is the marginal cost curve and how do you know?
b. Is the equilibrium in which there is one competitive industry
and one monopolistic industry efficient? Explain.
c. Now suppose the monopolist above can perfectly
price-discriminate. What is his marginal revenue curve?
Explain.
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