Question

In: Economics

For each of the problems below solve for monopoly quantity, monopoly price, total revenue, total cost,...

For each of the problems below solve for monopoly quantity, monopoly price, total revenue, total cost, profit, and dead weight loss.

Qd = 100 – 0.5p TC = 2Q²

Qd = 500 – 0.2p TC = Q² + 100Q

Qd = 30 – 0.6p TC = Q² + 10Q +100

QD = 1000 – 0.25p TC = 2Q² + 25Q + 100

Expert Solution

Monopolist maximizes profit at MR = MC

1.

P = 200 - 2Q

TR = 200Q - 2Q²

MR = 200 - 4Q

Total cost, TC = 2Q²

MC= 4Q

Equate MR to MC

200 - 4Q = 4Q

=> 8Q = 200

=> Qm = 25 units

=> Pm = $ 150 per unit

TR = 25 × 150 = $ 3750

TC = 2× 25^2 = $ 1250

Profit = TR -TC = 3750 - 1250 = $ 2500

DWL = (1/2)×(Pm -MC) ×(Qp-Qm)

= (1/2)×(150-133.33)×(33.33-25)

= $ 69.42

Note: Qp is output under perfect competition. P = MC

200 - 2Q = 4Q

6Q = 200

Qp = $ 100/3

2.

3.

4. Refer the attached picture

I am sorry for my bad writing. As a number of questions were there so I was forced to write. Please contact if having any query will be obliged to you for your generous support. Please help me it mean a lot to me. Thank you.

Rahul Sunny answered 4 months ago

Suppose that a monopoly faces the demand, marginal revenue, and cost schedules below. Quantity Price Marginal...

Suppose that a monopoly faces the demand, marginal revenue, and cost schedules below. Quantity Price Marginal Revenue Marginal Cost Average Total Cost 1 230 230 100 150 2 210 190 100 125 3 190 150 100 116.6666667 4 170 110 100 112.5 5 150 70 100 110 6 130 30 100 108.3333333 7 110 -10 100 107.1428571 8 90 -50 100 106.25 9 70 -90 100 105.5555556 10 50 -130 100 105 What quantity maximizes profit? The monopoly Q =...

Use the cost and revenue data to answer the questions. Quantity Price Total revenue Total cost...

Use the cost and revenue data to answer the questions. Quantity Price Total revenue Total cost 1010 9090 900900 675675 1515 8080 12001200 825825 2020 7070 14001400 10251025 2525 6060 15001500 12501250 3030 5050 15001500 15001500 3535 4040 14001400 18501850 If the firm is a monopoly, what is marginal revenue when quantity is 2525 ? MR = $ Not a valid number tools x10y What is marginal cost when quantity is 1515 ? MC = $ Not a valid number...

Complete the following cost and revenue schedule. Price Quantity Demanded Total Revenue Marginal Revenue Total...

Complete the following cost and revenue schedule. Price Quantity Demanded Total Revenue Marginal Revenue Total Cost Marginal Cost Average Total Cost 200 0 240 180 10 360 160 20 500 140 30 660 120 40 840 100 50 1040 80 60 1260 60 70 1500 40 80 1760 20 90 2040 a. At what rate of output are profits maximized within this range? b. What are total profits at that output rate?

Below is a table that represents price, output, cost, revenue and profit data for a monopoly....

Below is a table that represents price, output, cost, revenue and profit data for a monopoly. Price Q TR MR MC TC Profit $290 0 --- --- -$1,000 $280 1 $100 $270 2 $1,180 $260 3 $60 $250 4 $240 5 $60 $230 6 $1,420 $220 7 $1,540 $210 8 $200 9 $1,980 (a) Fill in the missing numbers for Firm B. Note: there are no numbers for MR and MC when Q=0. When output level is 4, the Average...

The table below depicts the cost and demand structure a natural monopoly faces. Quantity Price ($...

The table below depicts the cost and demand structure a natural monopoly faces. Quantity Price ($ per unit) Long-Run Total Cost ( $ ) Total Revenue ($) Total Profit ($) Long-run Average Cost ($ per unit) Marginal Cost ($ per unit) Marginal Revenue ($ per unit) 0 50.00 0.00 - - - 1 47.50 40.00 40 47.50 2 45.00 81.00 40.5 90 3 42.50 118.50 39.50 127.5 4 40.00 160.00 40 160 5 37.50 197.50 39.50 187.70 6 35.00 245.40...

If quantity is 100 when price is $50, what is total revenue? Given a quantity of...

If quantity is 100 when price is $50, what is total revenue? Given a quantity of 1,000, a price of $10, and a total cost of $8,000, calculate total profit. On a monopoly graph, how do you find the profit maximizing level of output? At the intersection of demand and marginal cost and drop straight down. At the intersection of marginal revenue and marginal cost and drop straight down At the minimum of the average total cost curve and drop...

Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost Fixed Costs ATC Average Fixed Costs Average...

Quantity Total Revenue Marginal Revenue Total Cost Marginal Cost Fixed Costs ATC Average Fixed Costs Average Variable Costs 0 0 - 10 - 10 - - - 1 8 24 14 24 2 16 34 10 17 3 24 42 8 14 4 32 49 7 12.25 5 40 57 8 11.4 6 48 67 10 11.17 7 56 81 14 11.57 8 64 99 18 12.38 9 72 123 24 13.67 1b. At a price of $14, what is...

At a quantity of 265 units marginal revenue equals marginal cost. Fixed cost is $2,500, the Total Variable cost is $9,500, and the total revenue is $11,000.

At a quantity of 265 units marginal revenue equals marginal cost. Fixed cost is $2,500, the Total Variable cost is $9,500, and the total revenue is $11,000. Calculate the average fixed cost, average variable cost, average total cost and marginal revenue. Should the company shut down or stay in business in the short run? In the long run?

At a quantity of 375 units marginal revenue equals marginal cost. Fixed cost is $1000, the Total Variable Cost is $7,000 and the Total Revenue is $6000.

At a quantity of 375 units marginal revenue equals marginal cost. Fixed cost is $1000, the Total Variable Cost is $7,000 and the Total Revenue is $6000. Calculate the average fixed cost, average variable cost, average total cost and marginal revenue. Should the company shut down or stay in business?

Complete the following cost and revenue schedule Average Quantity Total Marginal &nbsp

Complete the following cost and revenue schedule Average Quantity Total Marginal Total Marginal Total Price Demanded Revenue Revenue Cost Cost Cost $20 0 $8 $18 1 $14 $16 2 $22 $14 3 $32 $12 4 $44 $10 5 $58 $8 6 $74 $6 7 $92 $4 8 $112 $2 9 $147 a. Graph the demand, MR, and MC curves....