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 in the home market.

Expert Solution

In the event that the monopolist were to produce a similar quantity as before that is 29.33, yet sell a greater quantity of it in home market where demand is more inelastic, he can't change the price much in any event, when the quantity changes. This was his cost which will keep on being to some degree unaltered yet quantity sold would rise. This way his profits won't ascend as much as when he is selling greater quantity in foreign market. Subsequently dumping encourages him expanding his profits.

Rahul Sunny answered 2 years ago

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 a marginal cost curve MC=Q and a home market demand P=30-Q. The monopolist...

A monopolist has a marginal cost curve MC=Q and a home market demand P=30-Q. The monopolist can also sell in a foreign market at a price pf Pf=12. Find and graph the quantity produced, quantity sold at home, and quantity sold in the foreign market, as well as the price charged at-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.

1) Consider a monopolist with demand Q = 120-2p and marginal cost MC = 40. Determine...

1) Consider a monopolist with demand Q = 120-2p and marginal cost MC = 40. Determine profit, consumer surplus, and social welfare in the following three cases: a)single-price monopolist b)perfect price discrimination c)Consider that the firm is operating in a perfectly competitive market. Find the profit, consumer surplus, and social welfare under this situation. Show this study graphically.

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

Suppose that a monopolist whose marginal cost curve is MC(Q)=Qfaces the demand curve P=10-2Q.

Suppose that a monopolist whose marginal cost curve is MC(Q)=Q faces the demand curve P=10-2Q. What is monopolist's profit-maximizing quantity, profit-maximizing price, the total surplus (under monopoly profit maximization), also called the "monopoly market surplus," and if the monopolist can perfectly price discriminate, then deadweight loss equals...?

A monopolist with marginal cost of MC=Q faces a demand curve of QD = 20 -...

A monopolist with marginal cost of MC=Q faces a demand curve of QD = 20 - 2P. This implies that P = 10 - (1/2)Q and that the marginal revenue is MR = 10 - Q. a. Sketch demand, marginal revenue, and marginal cost curves. b. What quantity and price will the monopolist set? c. What quantity and price would the monopolist set if it produced at the efficient market outcome where P=MC? d. Identify the CS, PS and DWL...

A monopolist faces an inverse demand of P(Q) = 250−2Q and constant marginal costs. a) Calculate...

A monopolist faces an inverse demand of P(Q) = 250−2Q and constant marginal costs. a) Calculate the optimal price, quantity and total revenues, for MC = 10 and MC = 30. b) Repeat question a) under perfect competition with constant marginal costs for MC = 10 and MC = 30. c) Discuss how the marginal cost increase from 10 to 30 affects revenue in the monopoly case vs perfect competition. Relate your answer to the price elasticity of demand d)...

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 faces a market demand: P = 200 – Q. The monopolist has cost function...

A monopolist faces a market demand: P = 200 – Q. The monopolist has cost function as C = 1000 + Q2, and marginal cost MC = 2Q. ( 1) Solve for Marginal Revenue (MR) function. (2) Find the profit-maximizing quantity? Profit? (3) Suppose the monopolist decides to practice 3rd degree price discrimination. Without solving for the 3rd degree price discrimination, can you compare the new profit earned by the monopolist with the old profit?

Question