Question
In: Economics
consider a monopolist. Suppose the monopolist faces the following demand curve: P = 140 – 6Q....
consider a monopolist. Suppose the monopolist faces the following demand curve: P = 140 – 6Q. Marginal cost of production is constant and equal to $20, and there are no fixed costs. What is the monopolist’s profit maximizing level of output?
What is the value of the deadweight loss created by this monopoly?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
Suppose a monopolist faces the following demand curve: P = 440 – 7Q. The long run...
Suppose a monopolist faces the following demand curve:
P = 440 – 7Q.
The long run marginal cost of production is constant and equal
to $20, and there are no fixed costs.
A) What is the monopolist’s profit maximizing level of
output?
B) What price will the profit maximizing monopolist produce?
C) How much profit will the monopolist make if she maximizes her
profit?
D) What would be the value of consumer surplus if the market were
perfectly competitive?
E)...
Suppose the firm is a monopolist. It faces a downward-sloping demand curve, P(Q). If it also...
Suppose the firm is a monopolist. It faces a downward-sloping
demand curve, P(Q). If it also has non-negative marginal cost, will
it choose a quantity on the demand curve where the price elasticity
of demand is less than, greater than, or equal to -1? Explain.
Two Hints: First, recall that R(Q) = P(Q) times Q, and that the
price elasticity of demand is defined as .
Second, recall the condition MR = MC. Think about how the firm’s
revenue will...
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
A monopolist faces a single market with the following demand curve and total cost P =...
A monopolist faces a single market with the following demand
curve and total cost
P = 180 – 2.5Q and TC = 2Q2
i. Determine the quantity of output that it should produce and
the price it should charge to maximize profit. Then, calculate the
profit.
A monopolist faces a demand curve of Q = 164 – P, where P is price...
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 of the form: P = 610 – 0.01Q. The total...
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 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 demand curve of the form: P = 610 – 0.01Q. The total...
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 the following demand curve: P = 510 - 0.7Q; its total cost is...
a. Monopolist faces the following demand curve: P = 510 - 0.7Q;
its total cost is given by: TC = 800 + 0.15Q Find marginal cost and
marginal revenue
b. Monopolist faces the following demand curve: P = 520 - 0.7Q;
its total cost is given by: TC = 800 + 0.3Q Find marginal cost and
marginal revenue
1. A monopolist faces the following demand curve: P = 40 - 2 Q. His...
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...
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